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Prize winner
Case
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Reference no. IMD-5-0543
Subject category: Marketing
Published by: Institute for Management Development (IMD)
Originally published in: 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 CHF150 million to CHF1 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.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Time period

The events covered by this case took place in Autumn 1999.

Geographical setting

Region:
World/global
Country:
Switzerland

Featured company

Nestlé
Industry:
Coffee; Food

Featured protagonists

  • Yannick Lang (male)
  • Willem Pronk (male), General Manager

About

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 CHF150 million to CHF1 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.

Teaching and learning

This item is suitable for postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in Autumn 1999.

Geographical setting

Region:
World/global
Country:
Switzerland

Featured company

Nestlé
Industry:
Coffee; Food

Featured protagonists

  • Yannick Lang (male)
  • Willem Pronk (male), General Manager

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