Nespresso was created in 1986 as a subsidiary of Nestle. It has found global success through its high-end positioning, practical coffee machines, high quality coffee, excellent service, and strong branding. Major competitors include Jacobs Douwe Egberts, but Nespresso differentiates itself through programs like its club and unique capsules. While Nespresso has been successful through innovative marketing, its unique positioning may not be enough to resist new competition from Jacobs Douwe Egberts, which has greater resources to invest in advertising and producing compatible capsules.