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Case
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Reference no. IMD-5-0543
Published by:
IMD (2000)
Version:
15.12.2003
Length:
24 pages
Data source:
Field research
Abstract:
The case traces the development of the Nespresso System in a 100%-owned affiliate deliberately placed outside of Nestle'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 SFR150 million to SFR1 billion within the next decade. A radical departure from most Nestle lines of businesses targeted to the mass market, the Nespresso story offers provocative lessons about innovation in large, highly structured organisations.
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