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Prize winner
Case
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Reference no. IMD-5-0543-JP
Japanese language
Subject category: Marketing
Published by: International Institute for Management Development (IMD)
Originally published in: 2007
Version: 15.06.2016
Length: 26 pages
Data source: Field research

Abstract

This is a Japanese version. 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.
Industry:
Size:
CHF150 million annual revenue in 1999
Other setting(s):
Autumn 1999

About

Abstract

This is a Japanese version. 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.

Settings

Industry:
Size:
CHF150 million annual revenue in 1999
Other setting(s):
Autumn 1999

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