Nespresso Case Study Analysis
Table of Contents
1. Title Page
2. Table of Contents
3. Executive Summary
3. Synopsis of Case Study
4. Case Specific Questions and Responses
1. Identify the macro- and micro-environmental factors that led Nestl to pursue the
productization of Nespresso. Which ones were most important, and why?
2. What role did Nestlé’s corporate culture play in the productization of Nespresso?
3. Who were the key players in the Nespresso productization, and which role did each
one play?
4. What is meant by “innovation” and “renovation”, respectively, in the Nestl context?
5. Which role did each of Nestlé’s corporate functions play in the Nespresso
productization?
6. Identify the critical success factors in the productization of Nespresso.
7. Why do you think Nespresso was first launched in Italy?
8. Why did Nestlé management keep an “arm’s length” relationship with Nespresso
and bring in Yannick Lang, an outsider, to manage it? What does this say about
Nestlé’s ability to innovate?
9. Compare Nespresso’s initial “stealth marketing” (word-of-mouth) strategy with its
current use of George Clooney as “poster boy” for the product.
10.Do you think that Nespresso would have been as successful without Nestl as a
corporate parent? Justify your answer.
11.What are the main strategic challenges currently facing Nespresso?
12.Do a “5 forces” analysis of Nespresso. Which opportunities do you see for
potential competitors, and why?
5. Conclusions and Recommendations
Executive Summary
The following report consists of a reflection by way of a set of proposed questions
concerning the introduction of the Nespresso System, an at home instant espresso machine
introduced by Nestle that took advantage of an easy-to-use, disposable capsule. A new
breed of coffee drinkers were arriving to market and the vision to capture this market and
be the leader of the instant single serve espresso was the combination that brought
Nespresso to being. Since the idea was to serve a much narrower market than Nestlé’s
usual line of business they formed a new company, Nestle Coffee Specialties to better
serve this new line of product and began a new chapter in the history of Nestle.
Synopsis
The case study begins with an introduction to Nestle as a corporation and how the
Nespresso System came to be including the inception of a new operating company that
was specifically created to focus on Nespresso. Nespresso was a departure from the regular
offerings of Nestle and so there was a lot of skepticism on how successful they would be
