In this week’s blog, we analyze our company based on the SWOT analysis. The SWOT analysis combines the findings of the external and internal analysis and forms the starting point for the development of a company’s strategic orientation and for the definition of strategic success positions. A strategy can only be successful if the strengths and weaknesses of the company are in line with the predicted opportunities and threats. Since the 1960s, the SWOT analysis has been the basis of almost all attempts to formalize the process of strategy development of a company.
We take a closer look at the analysis to highlight some important aspects. Below, we take a deeper look into three points that we find the most interesting:
- The first issue to be addressed is the loss of the patent in 2012, which is listed as a weakness. A company cannot protect an invention with expired patent protection from competition with trademark rights. This was decided in Switzerland 7 years ago by the Federal Supreme Court. As a result, Nespresso lost the ability to produce capsules for their machines as a single company. Is there a solution? One way might be to develop a new type of capsule in the development department followed by a new patent.
- In addition, Nespresso offers the possibility of using a current weakness as an opportunity and thus transforming it into a strength. This is done through though selling capsules in supermarkets. Recently Nespresso bought the right to produce Starbucks capsules for 7 billion Swiss francs and also to sell them in supermarkets. The company is thus venturing into completely new dimensions.
- Another weakness that exists is the never-ending story of sustainability. The production of aluminium capsules is still considered harmful to the environment. The company is aware of the problem and tries to recycle its capsules using various methods. However there is still a need for development. Are the newly produced capsules made of recycled aluminium? Not yet. This closed-loop system (where new capsules are made from recycled ones) offers room for improvement, with the path already leading in the right direction.
Nespresso is already excellently represented in the market, but the analysis shows that even for a company of this size there are always new areas where potential has not yet been exploited. With its boutique shops, which are centrally located in cities and serve their own products in addition to selling coffee capsules, the company is moving closer to their customers and thus strengthening their loyalty.
They are also not shy to venture into new areas and to discover the unknown partly through large investments (like the Starbucks move). In addition, they continue to work on known problems and try to keep up with the times through transparency.
Bibliography:
Marcel Speiser, 13.11.2018, Nestlé-Chef Mark Schneider: Starbucks, what else?, retrieved from: https://www.handelszeitung.ch/unternehmen/nestle-chef-mark-schneider-starbucks-what-else
Alexandra Tiefenbacher, 03.12.2018, Die Kaffeekapseln von Nespresso können zwar rezykliert werden. Aber bestehen die Kapseln selbst auch aus rezykliertem Aluminium?, retrieved from https://daslamm.ch/die-kaffeekapseln-von-nespresso-koennen-zwar-rezykliert-werden-aber-bestehen-die-kapseln-selbst-auch-aus-rezykliertem-aluminium/
Nespresso Boutique Flon 