Nespresso, Sustainable, Quality, Program
Organizations seeking continual innovation of their product portfolio and processes in the quest of improving their profitability and sustaining their revenue growth, incur huge investment. Ordinarily, undertaking innovations to improve processes and products are often expensive and time-consuming, besides requiring a considerable upfront investment in everything from research and development to specialized resources, new plants and equipment, and even entire new business units (Amit & Zott, 2012).
Considering the bet involved when committing to such investments characterized by uncertain returns, business model innovation offers an alternative
source of competitive advantage of generating and capturing value. Business model innovation stretches beyond differentiation of the product quality or improved production scale, for the company to innovate in lines that denies rivals the opportunity to act. The Nespresso business model innovation offers a unique channel to keep the company ahead of its rivals' product innovation cycle, in the process shielding it from competing innovations with the potential to wipe out the need for its products.
[...] The refined strategy founded on pillars of value generation comprising quality, sustainability, and productivity operates through four active partners. Firstly, ECOM is coordinating the commodity trade by reaching farmers through the latter's club where a progressive cluster of the coffee quality namely Cherry, Parchment and Gold is maintained. However, Nespresso verifies the quality at Avenches to allow complete NESPRESSO 5 traceability right from the origin to the pods. Secondly, Rainforest Alliance measures the sustainability performance of farmers involved through a watered down version of the RFA sustainability standard, tailored to the Nespresso Premium quality products (Doorneweert, 2011). [...]
[...] Despite the reliance on the AAA sustainable program to obtain green coffee of meeting its quality standard, Nespresso utilizes its internally built mechanism. Here, it utilizes a unique preservation system attained through the espresso machine to ensure the capsules are vacuumsealed and airtight for the coffee to retain its freshness. In addition, the tightly sealed capsules keeps coffee held inside free from light and moisture to sustain the range of tastes. Moreover, the espresso machine offers electronic control fitted with a thermo-block boiler to maintain water temperature at 86-91 degrees centigrade suitable for extraction (Matzler, Bailom, Friedrich, & Kohler, 2013). [...]
[...] NESPRESSO 6 Firstly, Nespresso sustains the unsurpassed quality in its broad range of tastes acquired from the deep expertise in coffee by Nestle organization. This generates platforms to master and monitor quality in their coffee from producers' farms to the consumers. Although the segment records continuous expansion, the company retains a singular focus on specific aspects that defines and progress consumer experience. In the process, the company fuels its persistent drive to innovate through distinctive designs engineered by its in-house R&D team. [...]
[...] NESPRESSO 7 Nestle positions the Nespresso business unit with a unique model of generating value propositions through its key activities, internal resources and marketing channels. While furthering its easy-to-use espresso, the company harness customer retention through internal resources comprising cup-factory, cup-patent and distribution network. Secondly, its marketing logic is based upon direct contact with customers rather than the traditional retail distribution concept. Since assuming unchartered directions, the Nespresso operates Nespresso.com to support the 7 million Nespresso club members, of which more than 50% of new members are referrals from existing members (Matzler, Bailom, Friedrich, & Kohler, 2013). [...]
[...] Matzler, K., Bailom, F., Friedrich, S., & Kohler, T. (2013). Business model innovation: coffee Triumphs for Nespresso. Journal of Business Strategy, 31-37. NESPRESSO 10 Nespresso. (2013). The Nespresso Roadmap for Sustainable Growth. [...]
using our reader.