The case traces the development of the Nespresso System in a 100%-owned affiliate deliberately placed outside of Nestlé’s main organisational structure. It highlights the team’s successes and challenges in creating a new, small, niche segment in the mature coffee market and its prospects for growing the business from Sfr 150 million to Sfr 1 billion within the next decade. A radical departure from most Nestlé lines of businesses targeted to the mass market, the Nespresso story offers provocative lessons about innovation in large, highly structured organisations.
Nestlé, Nespresso, Consumer Goods, Coffee
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