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Explanation of Nespresso Business Model and Effectiveness
Nespresso refers to a competitive business model developed by a multinational coffee vending company. It is based on a machine and pod vending of coffee whose competitive advantage emanated from the method of creation of utility using unique and innovative ways. The Nestle company managed to outshine the rest of the companies in the food industry through innovativeness in the designing of an attractive product and the customer service system or process. The company incorporated several creative m\marketing methods to lure customers to their coffee brand. Nespresso business model had failed for several times and almost bankrupted the company as it was trying to fund the manufacturing and the installation of machines (Doorneweert, 2017). It shows that the competition expected in future lies solely on the services and activities surrounding the product but not the product itself.
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