Nespresso - Strategy and Competition - Essay Example

Nespresso - Strategy and Competition Try to observe or find out Operations in their boutiques, Interactions (HR, s), Critical Issues, Challenges.The Nespresso is an elite and exclusive espresso coffee brand of Nestle. The company provides its customers with the exclusive espresso experience through its boutiques where it sells the coffee as in a coffee bar as well as through its websites. The operations of the boutique are highly dependent on the location where it is located as they tend to be oriented towards the local community.

The operations in the boutique pertain to coffee blending, coffee steeping and the presentation of coffee to the customers. Aside from this the presentation of the Nespresso specific equipment to the customers and the process of making high quality espresso coffee is also shown to the customers as part of the operations of the boutique. The boutiques also provide a presentation area where the different Nespresso coffee making equipment and the Nespresso blend capsules are set up.The Nespresso boutique interacts with the customers by hosting a coffee bar at the boutique with entertainment and sitting area for the customers.

The customers can interact with the staff by ordering their coffees, making their own coffees at the bar through the single serving percolators as well as by providing the management of the boutique with feedback on the quality and service. The company also operates through its websites whereby the customers can order the coffee and the equipment online. This is delivered the customers residence or mentioned address by the company. The critical issues that have been faced by the brand and its serving boutiques is to combat the tea drinking culture in the Asian countries as well as bring the concept of single serving espressos made through coffee capsules containing exclusive special blends to the customers.

The challenges that the company has faced pertain to building relationships with customers and fording them into long lasting loyalties. The concept of brand loyalty is very strong with Nespresso, however it has been challenging for the company to make loyal customers as well. 2. Gather information (Motivation, Satisfaction, Success, Issues)The motivation of the company is being providing an exclusive and portioned form of coffee and equipment to customers has been to revolutionize the way the coffee is perceived and consumed.

The company saw the trend towards smaller family sizes and single person households in the 1970’s and has built on it to produce the single serving coffee capsules as well as the single serving coffee making machines. The customer satisfaction for the products manufactured and provided by the Nespresso Company has been bountiful. The high quality exclusive coffee and the coffee making equipment are highly appreciated by the niche market that Nespresso caters to. Aside form this the company has also been making significant changes to its service level and product offering to satisfy its customers.

“Nespresso can now offer its customers faster response to their inquiries through an easy-to-use service hotline. Instead of being placed on hold to wait for the next available coffee specialist, customers can complete either all or part of their order through voice prompts. This result in reduced waiting times and leads to enhanced customer satisfaction. The voice system is multilingual in German, French and Italian and allows Nespresso to cut contact center costs by completing more calls with the same number of agents.

” (‘Nortel Speeds up Response Times to Customers at Nespressos Contact Center’, 2008)The success factors that have enables the Nespresso brand the company to be successful is proactive thing and strategy making on part of the company as well as the maintenance of high quality product and service for in its operations. References2008, ‘Nortel Speeds up Response Times to Customers at Nespressos Contact Center’, Market Wire, available at http://findarticles.com/p/articles/mi_pwwi/is_200806/ai_n25480456Lewis, H.C., 2007, ‘A Capital Idea? Well….’, Direct, Vol.

19 Issue 2, p64-64, 1p, available at http://web.ebscohost.com/bsi/detail?vid=1&hid=117&sid=e3b08846-54b4-4a16-a15d-12309e92eb09%40sessionmgr104&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=buh&AN=24237919Markides, C.C., 1999, ‘A Dynamic View of Strategy’, Sloan Management Review, Vol. 40 Issue 3, p55-63, 9p, 1 diagram, 1 bw, available at http://web.ebscohost.com/bsi/detail?vid=1&hid=105&sid=92e98b93-21ea-44ab-a904-a8291df37f16%40sessionmgr104&bdata=JnNpdGU9YnNpLWxpdmU%3d#db=buh&AN=1792757