Nespresso has established itself as a well-known global coffee brand through its unique business model of selling high-quality coffee capsules. However, it faces competition from similar capsule-based systems like Tassimo and Senseo as well as from Jacobs Douwe Egberts pods that are compatible with Nespresso machines. Nespresso differentiates itself through superior brand positioning and customer experience, though it will need to continue innovating and exploring new marketing strategies like sponsoring global events to maintain its edge over rivals.