I. Nespresso’s SWOT analysis

Strengths | * Leader for 15 years * Record of benefit every year since 2001 * High quality products * Wide range of products (machines, capsules, dishes or accessories) * Annual new arrivals: dynamic innovation * Convenient product: “one capsule = one cup” * Loyal customers * Nespresso’s customer earn comfortable income * Personalised advices 24h/day, 7days/week | Weaknesses | * Famous competitors Senseo, Maison du café, Tassimo… * Could be seen as a polluting company Not enough in the ecological trend with their capsules | Opportunities | * Incredible growth of the premeasured coffee market x% in 2009 * Luxury market (bout 30% of profit margin) * More than 1,5 billions cup are drunk each day, worldwide * Trend of the environmental solutions * Sales in terms of value progressed slightly Result of fair trade coffee and capsules * Customers ready to pay more for an upmarket coffee demanding quality * Customers expect ease-to-use products * Capsules are very popular | Threats | * Current trend for health people’s favourite products based on fruits (smoothie, juice…) * Significant decline of coffee consumption among young people * Mostly drunk in northern countries * Capsules are seen as a-non-environmental -friendly product * Sensitiveness of customers about prices |

II. Main objective A) Result of the SWOT analysis B) Expression on the main objective

C) Objectives analysis

As we saw it in the SWOT analysis, Nespresso is a powerful enterprise. Indeed this enterprise has very important benefits. That’s why we want to keep the actual image of the brand (with George Clooney). However, Nespresso can still improve its image by adding to its current image an ecological aspect. It has to do it because there is a real demand of the customer. Today, people want to protect the planet for the future generations and Nespresso has to be in motion.
To be ecological