Business model innovation: coffee triumphs for Nespresso

Business model innovation: coffee triumphs for Nespresso Purpose – This article aims to examine the concept of business model innovation and to discuss the design of the key elements. Based on a detailed case study of Nespresso, it seeks to outline how business model innovation can be implemented successfully. Design/methodology/approach – Based on a theoretical conceptualization of a business model, the authors conduct an in‐depth case study to draw conclusions for a successful implementation of a business model innovation. Findings – A business model innovation comprises five components: an innovative, unique positioning, a consistent product and service logic, an appropriate value creation architecture, an effective sales and marketing logic and a profit formula that works. Success is based upon a unique, innovative and coherent design of the business model's components. Originality/value – Based on Nespresso's business model, this paper illustrates what a business model innovation is, what its components are and how they should be designed to create and capture value. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Business Strategy Emerald Publishing

Business model innovation: coffee triumphs for Nespresso

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Publisher
Emerald Publishing
Copyright
Copyright © 2013 Emerald Group Publishing Limited. All rights reserved.
ISSN
0275-6668
DOI
10.1108/02756661311310431
Publisher site
See Article on Publisher Site

Abstract

Purpose – This article aims to examine the concept of business model innovation and to discuss the design of the key elements. Based on a detailed case study of Nespresso, it seeks to outline how business model innovation can be implemented successfully. Design/methodology/approach – Based on a theoretical conceptualization of a business model, the authors conduct an in‐depth case study to draw conclusions for a successful implementation of a business model innovation. Findings – A business model innovation comprises five components: an innovative, unique positioning, a consistent product and service logic, an appropriate value creation architecture, an effective sales and marketing logic and a profit formula that works. Success is based upon a unique, innovative and coherent design of the business model's components. Originality/value – Based on Nespresso's business model, this paper illustrates what a business model innovation is, what its components are and how they should be designed to create and capture value.

Journal

Journal of Business StrategyEmerald Publishing

Published: Mar 29, 2013

Keywords: Value creation; Value capture; Business model innovation; Case studies; Components of a business model; Value analysis; Innovation; Corporate strategy

References

  • Value creation versus value capture: towards a coherent definition of value in strategy
    Bowman, C.; Ambrosini, V.
  • Creativity is not enough
    Markides, C.C.

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