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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

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