INNOVATION AND RENOVATION THE NESPRESSO STORY

INTRODUCTION
The main point of this case is how firms can develop and maintain new strategies in order to have innovation and renovation, this two are fundamentals for all the companies who want to be competitive and evolving in the changing market.
Nespresso, as a line product of NESTLE, not just developed a different way to sell coffee, also created a new business model difficult to copy for the competition and a good approach to the market of R&D coffee.

CONTEXT
Nespresso System is an innovative concept because offers to the consumer an individual portions of coffee (high quality coffee). Many of these consumers are in Europe, principally in the Scandinavian nations. The Nesspreso …show more content…

* How to overcome the skepticism in the company? * Solution: Separating the Nespresso Company from Nestle to keep there just the group of people that created, develop and believe in the idea, also reaching an outsider manager, because they need to had a fresh perspective of the business. * What would be the best business model? * Solution: A Strategy of positioning through Nespresso Clubs, member card, attention to the costumers, personal assistances, and training the sellers to give a better treat and information to the costumers, also using a mouth to mouth strategy * How to position the product? * Solution: : A Strategy of positioning through Nespresso Clubs, member card, attention to the costumers, personal assistances, and training the sellers to give a better treat and information to the costumers, also using a mouth to mouth strategy * Reach a growth rate of representative in the R&B market * Solution: Attracting new customers, but not just make them to taste the coffee, or even giving for free the machines, a strategy that makes costumers desire Nespresso and establish a relation in the long term.
MANAGERS DECISIONS
To create a product like this, where people is used to drink traditional coffee, certainly is a Challenger.
For managers implies