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Competitive Advantage Nespresso

Essay by   •  May 7, 2012  •  Essay  •  284 Words (2 Pages)  •  3,105 Views

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Competitive advantage

Nespresso has grown annually around 30% since the year 2000. The brand stands for exclusivity, luxury and excellent service a high end brand. The one thing that differentiates the company from other coffee brands, is that they are all about coffee. (oncoffeemakers) Nespresso provides a wide variety and types of coffee for customers. In this way they provide a coffee taste that fits every person. Another thing that attracts customers are the coffee machines that have a smooth look and feel. That is what makes consumers buy Nespresso, it's a machine that makes your kitchen look better. Other advantages are:

* top class services

* the value chain of the products they offer

* the high brand identity

The services that Nespresso offers are personalized and exclusive to create long-lasting consumer relationships. Services offered by Nespresso add value to the product, it creates recognition and intimacy.

The high brand identity of Nespresso is mainly driven by their perfect positioning worldwide, the brand has a unstoppable drive for innovation and unique design. It is a Iconic brand since 2008 when it was the first company worldwide roast and ground coffee.

So all in all, the main competitive advantage of Nespresso is their focus on coffee, while other machines of different companies such as DeLonghi, Saeco and Gaggia go for the wide and variety of beverages, Nespresso emphasizes on producing great coffee.

Nespresso targets consumers on the top of the range, it's a luxury brand with higher priced coffee machines. The targeted customers of Nespresso are between 28 and 49 years. That overall have a higher income, seen that Nespresso opens specialty stores in the richer parts of cities to attract the higher income group.

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