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Case
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Reference no. IMD-5-0543-ZH
Simplified Chinese language
Subject category: Marketing
Published by: International Institute for Management Development (IMD)
Originally published in: 2017
Version: 18.05.2017
Length: 25 pages
Data source: Field research

Abstract

This is a Simplified Chinese 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 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.

Time period

The events covered by this case took place in Autumn 2000.

Geographical setting

Region:
World/global
Country:
Switzerland

Featured companies

Nestlé
Industry:
Coffee
Nespresso

About

Abstract

This is a Simplified Chinese 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 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.

Settings

Time period

The events covered by this case took place in Autumn 2000.

Geographical setting

Region:
World/global
Country:
Switzerland

Featured companies

Nestlé
Industry:
Coffee
Nespresso

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