The paper "Deep-Rooted Management Issues at Nespresso " is an outstanding example of a management case study. A Company’ s distinctiveness in terms of competition, value creation, growth and development, profit sustainability, and general success is a direct function of management and marketing strategies that the company employs for the affairs of its operations. In one way or another, the core principalities of management and strategic marketing normally place an organization in a better competitive position in the industry of other firms. According to Bowman, & Ambrosi (2000), value creation is also an important element of competitiveness of a firm.
Galea (2004) argues that companies that succeed in building sustained competitive advantage become successful in the long run. One of the salts of competitive advantages for a firm is value creation, which needs to be very distinctive (effective and efficient) from its competitors. With the global transformative growth in the business world, and with the advancing technological use in management, adoption of information technology has also been seen as among the greatest facilitators of competitive advantages. The business model that a company uses defines to a large extent how the company generates value and at the same times how it maximizes its revenues in order to sustain profitability.
The long-run success is one of the reasons of management competitiveness (Goldratt, & Cox, 2008) According to Johnson and Rundle (2009), the benefits that a company can enjoy in terms of increased profits or the cost that the same company can suffer in terms of value creation without a converse profit are expressed through the logic model that the company uses. Kleinaltenkamp and Ehret, (2000) also argue that the key to strategic management is prompt marketing and positioning the company in the industry with quality and convenient products using advanced technology before competitors attempt to copy the ideology.
Using a case study of Nespresso, this paper seeks to analyze how companies can maintain and improve growth from the strategic management and marketing point of view. In the process of addressing the topic of analysis, this paper analyses the deep-rooted management issues like the external and internal environmental analysis, competitive advantages of Nespresso, strategies, marketing strategies, and how the company uses these marketing strategies to maintain their competitive advantage in the industry. Business Model Innovation for value creation and value capture A business model illustrates the important tasks of value creation and value capture that targets challenging sustainable business development and profitability.
Every business has a distinct style with which it generates value and captures some of its values as profits. According to Kleinaltenkamp and Ehret (2000), the way or the logic with which the business firm creates and captures value form the business model that the firm uses.
The benefits that the firm derives from its customers are the created value through willing to pay for the product and services of the company. In this case, therefore, and according to McCracken (2001), the customer value-added comes about when the perceived value of the product exceeds its price. In this way, if the cost of producing the product is lower, the company generates profits and is the captured value. Notably, a business model innovation comes about in the event that a company increases its customer value and at the same time creates new value creation as well as a revenue model.
The revenue model, in this case, is expected to capture some of the value created in a branded new way. Consider the illustrative table below:
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