Illy Case Study
Illy Case Study
1) Iperespresso Project (35% of the overall budget) In the short term, looks to be able to create highest value for the company. The capsule system market grows at a 10% rate per year because it made easier and faster to prepare coffee. The market is actually dominated by an open international standard for pods that can be used in machines made by a variety of manufacturers, (E.S.E. pods are built by Illy according to this standard). The market comprises both home users and commercial establishments. Iperespresso pods use Illy’s patented standard that assure a better quality in the final product but at the same time need investments in coffee machines that support the proprietary design. The main issue for the company concerns the risk of battle in dominating the market, by multinationals with large legal budgets imposing proprietary standard. The opportunity relies in being recognized by the market as a high stand standard that could dominate in the future the espresso capsule technology.
|Strength |Weaknesses | |Top-quality final product; |Investments needed (coffee machines that support the proprietary | |Experience. |standard). | |Opportunities |Threats | |10% rate growth market; |Risk of battle in dominating the market by multinationals (ex. | |Been recognized from the market as the dominating market |Nespresso). | |standard. | |
2) Illy Issimo Project
1) Iperespresso Project (35% of the overall budget) In the short term, looks to be able to create highest value for the company. The capsule system market grows at a 10% rate per year because it made easier and faster to prepare coffee. The market is actually dominated by an open international standard for pods that can be used in machines made by a variety of manufacturers, (E.S.E. pods are built by Illy according to this standard). The market comprises both home users and commercial establishments. Iperespresso pods use Illy’s patented standard that assure a better quality in the final product but at the same time need investments in coffee machines that support the proprietary design. The main issue for the company concerns the risk of battle in dominating the market, by multinationals with large legal budgets imposing proprietary standard. The opportunity relies in being recognized by the market as a high stand standard that could dominate in the future the espresso capsule technology.
|Strength |Weaknesses | |Top-quality final product; |Investments needed (coffee machines that support the proprietary | |Experience. |standard). | |Opportunities |Threats | |10% rate growth market; |Risk of battle in dominating the market by multinationals (ex. | |Been recognized from the market as the dominating market |Nespresso). | |standard. | |
2) Illy Issimo Project