Nespresso Case

SWOT ANALYSIS:

According to the arguments about business model of Nespresso above, the following part is going to analyze the company strategies. The main analysis contains components of internal and external analysis through SWOT, the brand position as well as marketing mix.

Firstly, the internal analysis will concern about the strength and weaknesses of Nespresso in its leadership and management straties.

STRENGTH WEAKNESSES

* Significant increase of coffee industry in today market

* After oil, coffee is listed as the most traded goods (Allison, 2010)

* The ability of making real espresso for every serving cup

* The coffee capsule segment has increased up to 55% of mass distribution channels, according to a research from Forbes (2005)

* Nespresso outlet has competition with big names in market. For instance, Illy Espresso Café, Starbucks or Australian brand Gloria Jeans.

* The provision of Club Member and benefits that customer may get, throughout customer services and experience.

* The following services which concern with machine, including machine returns, machine repairing, machine replacement, machine installment for business office, and/or after-sales services.

* Strong concentration on services with customer care:

➢ Provide personal advice for customer.

➢ Offer hotline works 24/7 as being ready for any question or "need-help" from customer.

➢ Build an online system which collects customer data from capsule order email. On the other hand, the team from Nespresso also estimate the time of coffee capsule using and remind customer time-out through email.

➢ Anyone who purchase machine from any boutique or online shop is obviously become Nespresso club member. George Clooney is an ambassador and closest member of this club. * High price of machine and coffee capsule. Hence, customers are very sensitive in high-price market.

* Today, younger generation has lower consumption of coffee. The main segment is counted under the age of 35 to 64 (JAMA, 2004)

* In global securities, the price of coffee stock has fallen.

Secondly, the following external analysis will concern about the opportunity that considered as the trend of market as well as potential market linkage with the development and business strategies of Nespresso. Further, threats is also included in term of discussing about in-front and potential barriers that may stop Nespresso anytime. During this, the audience will have