Competitive Advantage through Innovation: The case of Nespresso
Brem A, Maier MA, Wimschneider C (2016)
Publication Language: English
Publication Type: Journal article
Publication year: 2016
Journal
Publisher: Emerald Group Publishing Limited
Book Volume: 19
Pages Range: 133-148
Journal Issue: 1
DOI: 10.1108/EJIM-05-2014-0055
Abstract
Purpose – The purpose of this paper is to describe how Nespresso achieved competitive advantage through innovation by changing the rules of the game in its industry.
Design/methodology/approach – Nespresso was analyzed based on public available secondary data, in combination with related academic concepts on innovation and competitive advantage.
Findings – The company succeeded by the thorough application of a strategy that, through perfect alignment, allowed the company to reach a unique market position. However, as described in the case, it took a relatively long time and the company came close to failure several times. Before the current situation of the company, it remains challenging in the future as well. Hence, the Nespresso story provides interesting space for discussion and learning about what innovation is, how innovation emerges, and under which circumstances innovation can serve as a source for competitive advantage.
Research limitations/implications – Especially given the current market situation, the case offers different starting points for discussion about innovation and long-term company success.
Practical implications – Especially before the current market situation, the case offers different starting points for discussion about innovation and the success of a company on the long term. The case is designed to give practitioners a better understanding on what an innovation as, and how competitive advantages can be linked to innovation.
Originality/value – This case of Nespresso is a unique combination of the concepts of innovation and competitive advantage. It serves as an example of an innovation, which was not successful from the scratch, but evolved over time and is still developing. As many innovations went through such a non-linear process, this case offers interesting lessons learned for academics as well as for practitioners.
Authors with CRIS profile
Alexander Brem
Lehrstuhl für Technologiemanagement
Christine Wimschneider
Lehrstuhl für Technologiemanagement
Involved external institutions
Germany (DE)How to cite
APA:
Brem, A., Maier, M.A., & Wimschneider, C. (2016). Competitive Advantage through Innovation: The case of Nespresso. European Journal of Innovation Management, 19(1), 133-148. https://dx.doi.org/10.1108/EJIM-05-2014-0055
MLA:
Brem, Alexander, Maximilian A. Maier, and Christine Wimschneider. "Competitive Advantage through Innovation: The case of Nespresso." European Journal of Innovation Management 19.1 (2016): 133-148.
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