Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 05.02.2025
Revision date: 16-Jan-2025
Length: 26 pages
Data source: Field research
Abstract
This is an abridged version of the case. Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company's current market base, which consists primarily of aging consumers, is likely to decline in the medium to long term. To compensate for the certain shortfall, the company needs to attract young coffee drinkers among Millennials and Generation Z, whose consumption and values are significantly different from the current base. Management is being forced to reset its historically successful strategy for a new era when today's young consumers will soon account for the bulk of the global coffee market.
Geographical setting
Region:
World/global
Countries:
Switzerland; United States; China; Japan
Featured company
Nespresso
Employees:
10000+
Turnover:
CHF 7.0 billion (est 2023)
Industry:
Consumer goods: Coffee
About
Abstract
This is an abridged version of the case. Nespresso, the global leading brand in portioned coffee, is facing an existential threat. The company's current market base, which consists primarily of aging consumers, is likely to decline in the medium to long term. To compensate for the certain shortfall, the company needs to attract young coffee drinkers among Millennials and Generation Z, whose consumption and values are significantly different from the current base. Management is being forced to reset its historically successful strategy for a new era when today's young consumers will soon account for the bulk of the global coffee market.
Settings
Geographical setting
Region:
World/global
Countries:
Switzerland; United States; China; Japan
Featured company
Nespresso
Employees:
10000+
Turnover:
CHF 7.0 billion (est 2023)
Industry:
Consumer goods: Coffee