Nespresso played three different strategic games.
Each time the market changed, the rules changed. Step through the three phases to see how — and what it teaches about strategy.
The market didn't exist. Nespresso had to build it.
In 1986, Nestlé launched Nespresso into the office market — and nearly closed it two years later. Near-zero sales. Wrong customer. Wrong job.
Jean-Paul Gaillard arrived in 1988 with a different question: not "how do we sell this to offices?" but "who actually needs this — and what job are they hiring it to do?"
His answer required four counter-intuitive decisions: abandon the office market entirely, raise capsule prices 50%, create an exclusive Club, and partner with design-led machine makers. He was building the Chanel of coffee.
The category was working. Now the growth was the danger.
30%+ annual growth sounds like victory. It is — and it's also a trap. New factories. New markets. Boutiques opening across 60 countries, each one needing to feel identical to the last.
The danger: rapid scaling routinely turns luxury experiences into ordinary products. The thing making customers pay 7× the price of ground coffee was the experience. Scale it wrong and that's gone.
George Clooney's arrival in 2006 wasn't just a celebrity campaign. It was a ceiling-holder — anchoring the brand's emotional height just as the system was becoming accessible to millions.
The patents expired. 400+ competitors entered. Only the brand remained.
In 2012, Nespresso's patents began expiring. Competitors could now make compatible capsules at 30–50% lower cost. The technical lock-in — 1,700 patents — was gone.
The customers who stayed weren't staying for the capsule. They were staying because Nespresso had become part of their identity. They were "Nespresso people." George Clooney was in their kitchen.
The new game: deepen that tribal identity. B Corp certification in 2022. Sustainability commitments. Vertuo — a new proprietary format that restarted the lock-in clock for the next generation.