LTYM - The Nespresso Case

Letters to a Young Manager

The Nespresso Case, #337
LTYM >

Please note that this letter is in-process; the following are my notes

***

The Nespresso case is an interesting example[6]. The Nespresso coffee making system was invented in 1976 by Eric Favre at Nestle. However, it was not until 12 years later that it became a success and another 12 years until it became a high-growth product for Nestle.[7] A new product idea and prototype could not survive 24 years of development unless it was protected and championed, which is what John Paul Gaillard did. [8]

[6] For a brief history of Nespresso, seehttps://en.wikipedia.org/wiki/Nespresso
[7] “In August 2010, it was reported that Nespresso sales have been growing at an average of 30 percent per year over the past 10 years and more than 20 billion capsules have been sold since 2000…”, Wikipedia, https://en.wikipedia.org/wiki/Nespresso
[8] Also see the interesting Case Study on Nespresso, herehttp://www.ecommerce-digest.com/nespresso-case-study.html. The case notes that developing Nespresso in a separate subsidiary also had a large role in its success.

***

________________________

References...

Takeaways:

If you believe in something, protect it

Discussion Questions:

For Further Reading: