Porter's Five Forces Analysis Of Nespresso

Competitive Rivalry

Competitive rivalry deals with the number of competitors and everything that is connected to them. In this case, the number of competitors would be very few because this product does not exist yet. If it does, it is not known globally like Nespresso. The quality differences is that the new muffin would be in the form of capsule, first given for free when coffee is bought. There will be different levels of coffee strength for the muffin, following the classic color range palette as can be seen in the photograph below.

Supplier Power

Supplier Power, also known as switching costs, is the option of substituting the companies from which supplies are bought. The size of suppliers is large and the uniqueness of service is low because one can buy from many different ones. The ability to substitute is high and the cost of changing is low. All of these apply to muffins, but not Nespresso coffee. I would have to buy from Nestlé so I assume I will get a better than market price.

Buyer Power

The Buyer Power involves the costs to the buyers and the level of switching costs. The number of customers is high because no one else is offering this at the international level and with a major brand like Nespresso. The size of each order is medium and the

First, the goal is to create a new muffin product that complements Nespresso’s coffee. Second, to leverage Nespresso’s strong brand equity, consumer relationships and distribution channels. Third, another aim is to attract new consumers that might not like coffee, but would enjoy a muffin with coffee inside. Next, this new product is supposed to attract new consumers that are not necessarily “coffee lovers.” A marketing audit will be carried out in order to analyze and evaluate Nespresso’s marketing activities, objectives and results. In addition, it will be confirmed that there is no similar product in the