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Prize winner
Subject category: Marketing
Published by:
IMD (2013)
Version:
09.10.2017
Revision date:
31-Oct-2017
Length:
17 pages
Data source:
Published sources

Abstract

In 2011, Nespresso achieved phenomenal success with revenues of CHF 3.5 billion. But in the meanwhile challenges started to appear. The 1,700 patents protecting Nespresso system were expiring and more and more copycat capsules compatible with Nespresso machines were emerging. Nespresso was seeing declining growth rate and market share loss. The case describes the new competition Nespresso faced, Nespresso's first reactions, and the tough choices it had to make in order to sustain its success.

Topics

Market competition; Strategy; Copycat; Portion-coffee; Single-cup coffee; Coffee machine

Setting

The events covered by this item took place in 2013.

Geographical setting

Region:
World/global

Featured company

Company name:
Nestlé
Industry:
FMCG; Coffee; Food

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