Product innovation: First of all, the Nespresso machine is a product that allows users to get an authentic espresso in just a few seconds thanks to its brewing and capsules technology.
Service innovation: Thanks to its Club, Nespresso is also a service that gives some advice about what kind of coffee people may like according to their track records. Besides, users can order capsules online.
Position innovation: Nespresso makes coffee an “affordable luxury” product(Sharp, 2007). Nespresso is perceived as a premium brand, selling coffee in the same packaging as if it were selling expensive chocolate. Nespresso’s concept stores are often located in fancy places, close to the luxury brands. All is about glamour with Nespresso. It has even a range of ‘Grand Crus’, terminology usually reserved for luxury wines.
Paradigm innovation: before Nespresso, when people were thinking about espresso, they were thinking about going to the Café. Nespresso has brought a new paradigm in the sense that espresso is now taken at home.
NESPRESSO – TYPES OF INNOVATION
The Nespresso’s innovation is about solving the following problem: “How making an authentic espresso, quickly, at your home, from an affordable and compact machine without covering every surface in discarded coffee grounds” (Sharp, 2007). But not only Nespresso invented this machine, it has also invented an ecosystem to support and diffuse this innovation. Therefore, Nespresso is altogether a product, service, position and paradigm innovation:
