Careful consideration of economics and business strategy can make the difference between simply having a great technology and building a great company. This lecture focuses on clearly defining your business model and how you propose to make money with your product or service. Case studies will be used to test concepts against a specific business.

1. us ine ss
B
Model
a nv as
C
E101
Mark Zimmerman
@markzim

7. Who do you serve?

8. What problem do you
solve?
do you do?
Wh at job

9. How do customers find
you?
How do they buy?
How do you deliver?

10. What type of
relationships do you
have?

11. How do you get paid?

12. What things
mudt
you do?
so

13. What resources do
you need to do them?

14. Who else do you need
need
to make your model
work?

15. What does it cost to
operate the model?

16. What?
How?
Who?
Why?

17. What?
How?
Who?
Why?

20. 1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup
price to restaurants and offices.

21. 1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup
price to restaurants and offices.
1988 - Acknowledged dud, Nestle considers shutdown.

22. 1989 - Jean Paul Gaillard named
Commercial Director. - “Pivots”
1970 - Invented
1976 - Patented
1986 - Launched
Sold as a complete solution, machines & coffee for a per cup
price to restaurants and offices.
1988 - Acknowledged dud, Nestle considers shutdown.

23. Separate the machine from the coffee.

24. Made and serviced by 3rd parties.Sold
through independent retail stores.
Manufacturers handle delivery and
stocking. Nespresso handles sales
training.

25. Made and serviced by 3rd parties.Sold
through independent retail stores.
Manufacturers handle delivery and
stocking. Nespresso handles sales
training.
Sold online and over the phone direct
to members of the Nespresso Club.
Delivered direct to consumers in 24
hours or less.

26. As market matured Nespresso
added their own brand machines
made by an OEM.
Added it’s own retail boutiques to
further control the sales message.
Created Nespresso Pro channel to
serve the office market.

28. production
marketing
membe
high end
Nespresso
logistics r
restaurant
e quality
C offe e high end
chin
ma ers
espresso at household
home
mak distribution retail
s
brand nespresso.co
patents m
call centre
production
plants nespresso
boutiques
distribtution manufacturing
& sales marketing capsule sales hardw
are
sa l e s

29. Nespresso

30. Business Model Generation
Alexander Osterwalder &
Yves Pigneur
Running Lean
Ash Maurya

31. Thank You.
Mark Zimmerman
@markzim