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Full Terms & Conditions of access and use can be found at Download by: [The UC San Diego Library] Date: 02 May 2017, At: 21:44 Supply Chain Forum: An International Journal ISSN: 1625-8312 (Print) 1624-6039 (Online) Journal homepage: Nespresso’s strategic and operational excellence: a review and logistical implications Yan Cimon & Diane Poulin To cite this article: Yan Cimon & Diane Poulin (2017) Nespresso’s strategic and operational excellence: a review and logistical implications, Supply Chain Forum: An International Journal, 18:1, 30-35 To link to this article: Published online: 09 Mar 2017. Submit your article to this journal Article views: 41 View related articles View Crossmark data
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Nespresso s strategic and operational excellence: a review and logistical implications Yan Cimon and Diane Poulin CIRRELT, FSA ULaval, Pavillon Palasis-Prince, Québec (QC), Canada ABSTRACT Nespresso is one of the most successful and innovative ventures in the consumer product industry in recent decades. Yet, it remains relatively understudied. The purpose of this paper is to provide an integrative insight into the Nespresso model . We focus on a firm-centric research strategy that is anchored in a systematic review of the academic literature. We find that Nespresso s model is highly integrated and is configured towards delivering superior value at every step, including logistics. Implications for academics are that firm-centric research may bring unique industrially relevant insights. Managers will find novel ways of leveraging their firm s strategic advantages. KEYWORDS Nespresso; operational excellence; strategic excellence; value creation Introduction In today s highly competitive consumer goods market, firms have to deal with razor-thin margins, especially in food- and beverage-related markets. But Nespresso, the reference in specialty coffee, was able to create a cate- gory of its own, to redefine a market and to design a business model from the ground up that was not the usual model its parent, Nestlé, had had so much success with even though it remains a dominant force on global coffee markets for a number of years (Linton, Liou, and Shaw 2004 ). How could that have happened? Indeed, at the onset, Nespresso was a risky project (Maniak and Midler 2014 ), a product for which there was no market (Markides and Oyon 2000 , 298), but they became a pioneer (Markides and Sosa 2013 ). It is estimated that they now enjoy a 30% growth per year and represents a third of the $10 billion global market for coffee capsules (Bereznoi 2015 ). Nespresso has even become a house- hold name like Kleenex or iPhone ; the term Nespresso model has even been used by Areva to describe its own business model, that is, a sale of nuclear combustible separate from the apparatus that transforms it into energy (Tandler 2014 ). How did Nespresso achieve this?
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