The Business Model of Nespresso
Nespresso is an autonomous unit of the Nestlé Group, and operates in about 62 countries. The Nespresso ecosystem consists of three key parts: 1) The Nespresso machine, developed by 7 different partners, 2) the capsules, sold exclusively by Nespresso, and 3) the services, provided by its over 700 boutiques (2018) where coffee specialists offer support to Nespresso’s customer base. As of 2012, this concept (machine, capsule, service) was subject to 1,700 patents. It offers customers individual portions of great coffee which is available in a wide variety of flavors to cater to each individual’s choice.