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Analysis of the Nespresso Strategy

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Analysis of the Nespresso Strategy
NESPRESSO

Analysis of the Nespresso strategy

Content | Page | Introduction | 3 | | | Defining the industry | 3 | | | Analyzing the industry | 3 | | | Core competences of Nespresso | 4 | | | The implementation of the Nespresso business model | 5 | | | Protecting the Competitive Advantage | 5 | | | The target group of Nespresso | 5 | | | Value creation through the Nespresso marketing approach | 6 | | | Practicing the corporate social responsibility in the Nespresso strategy | 7 | | | The importance of the strong relationship with the suppliers | 7 | | | Results from the strategy | 8 | | | Future threats and conclusions | 8 | | | References | 10 |

List of Tables | Page | | | Attractiveness of the industry (figure 1) | 6 | | | Boutiques (figure 2) | 10 |

Analyses of the Nespresso strategy

Introduction
Nespresso is one of the fastest developing brands that operate under the name of Nestle. In 1986 Nespresso introduced an innovative idea on the Swiss market and after a lot of changes in their business strategy; they achieved a leadership position on the coffee market - an industry which is proven to be really unattractive. The company relies their strategy on a lot of innovative approaches – not only with their business model, but also with their target group, marketing strategy, relationship with the customers and suppliers. In the next paragraphs it will be shown which is the core competence of the Nespresso strategy and what they are doing in order to protect it and make it successful. The report will search for evidences of a successful strategy, innovative approaches and core competence protection by analyzing and critically evaluating the published information from the official website of Nespresso and critics.

Defining the industry
The industry in which Nespresso operates is focused on producing and selling



References: Protecting the Competitive Advantage Nespresso`s management understand the importance of protecting the competitive advantage they have in the face of the unique business model (Michailova, Nielsen, 2006) Miller, J., 2003, Innovation and Renovation: The Nespresso Story., [online], Available on: http://wwwdim.uqac.ca/~attrembl/8INF848/Cases_HBRP/IMD046-PDF-ENG.pdf

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