Nespresso - Nestle's star in espresso machine business

Everytime I saw a Nespresso machine in a shop, I would not even consider trying coffee from it. Because in my brain Nespresso was strongly associated with Nescafe. I could not imagine that the coffee from such a machine could have a decent taste and be considered "real espresso". Only after our stay in a rented apartment for a summer vacation, where we had a similar espresso machine, I changed my mind. We had a Senseo type machine and used it a lot during the stay. However, the coffee was not that good. Already at home I started to research the pros and cons of such machines and came to a conclusion that Nespresso machines and coffee is exactly what I need! I went to a nearby shop to try the famous capsule and was pleasantly surprised. It tasted good, in fact really good. Since then I am dreaming of the Citiz Nespresso machine. Hopefully, will get the opportunity to get one for Christmas.

The business idea of Nespresso is simple but efficient: by creating machines that work only with a specific type of capsules from Nespresso, the company hooks its clients to the product forever. Well, theoretically. There are competitors on the market already: producers of reusable capsules and similar capsules that can be used in Nespresso machines. By the way, the copy of capsules suitable for Nespresso system was done by the former Nespresso boss, Jean Paul Gaillard. His Ethical Coffee Company started to produce cheaper, biodegradable capsules, which cost 2,60 eur for 10 pieces, in May this year. One month earlier, Sara Lee company entered the market with its L'OR Espresso capsules, which are also suitable for Nespresso machines. As a result, Nespresso launched a legal war against the new entrants. However, it has to face the fact: there will be more competitors once the patent for capsules expires in 2012.