Subject category:
Marketing
Published by:
International Institute for Management Development (IMD)
Version: 07.12.2021
Revision date: 28-Mar-2022
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 1999.Geographical setting
Region:
World/global
Country:
Switzerland
Featured company
Nestlé - Nespresso
Turnover:
CHF 150 million
Industry:
Coffee
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 1999.Geographical setting
Region:
World/global
Country:
Switzerland
Featured company
Nestlé - Nespresso
Turnover:
CHF 150 million
Industry:
Coffee
Featured protagonists
- Yannick Lang (male)
- Willem Pronk (male), General Manager