Subject category:
Marketing
Published by:
International Institute for Management Development (IMD)
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.
Location:
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
Location:
Industry:
Size:
CHF150 million annual revenue in 1999
Other setting(s):
Autumn 1999