Disruptive Innovation

 

What disruptive innovation means is that it maybe not the first product in the market, but it creates a new market and puts forward a new value of the product. Nespresso  is  what  can  be  defined  as  a  disruptive  innovation  in  the  coffee machine market, which even attracts more and more ground coffee customers with its continuous innovative technology for the last decades. As Markides and Geroski (2005) state that, “the emergence of a dominant design is important not only because it is a decisive step in establishing the new market but also because it triggers a severe consolidation in the market”. Nespresso was invented as a disruptive product thirty years ago, which was followed with lots of competitors since it came out. However, Nespresso not just focuses on researching for new kinds of coffee machine, but also keep looking for the method of making every step of using the machine in an easy and special way, which leads to the birth of Nespresso  capsules.  The  Nespresso  capsules  are  definitely  thought  as  the disruptive innovation in the coffee machine market, which really not only helps the Nespresso to redefine this specific market, adds unique values for Nespresso coffee machine, but also operates a new market in the history of coffee machine that become the steady selling point of Nespresso and margin profits comparing to  the  coffee  machine  itself.  Since  Nespresso  invented,  not  just  people  will immediately think of Nespresso while coffee machine was mentioned, but also the  competitors  of  the  coffee  machine  market  use  Nespresso  as  the business model and produce similar mode of products, which indicates that Nespresso is not just the dominant design in the market but also a disruptive innovation that leads  the  coffee  machine  market  by  its  continuous  innovative  machines  and business models such as capsules.