Internal And External Analyses Of Nespresso Analysis Essay Example For College

The methodogy used to analyse Nespresso Business Model is ‘Business Model Generation’ by Osterwater and Pigneur 2009. The methodology uses a model named Canvas, which divides the business model into 9 segments. The concept is simple, relevant, and understandable to analyse a company. This concept has been applied and tested around the world and is already used in organizations such as IBM, Ericsson and Deloitte. The nine basic building blocks are shown in the logic of how a company intends to make money.

The nine blocks cover the four main areas of a business: customers, offer, infrastructure, and financial viability. The business model environment of the company is analyzed in the external analyses using a mythology designed by Osterwater eg. The four main area of the environment are; Industry forces, key trends, market forces and macroeconomical forces. External analyses In this section the external environment influences on a company such as Nespresso are analysed into a treat or an opportunity depending on the implication on the E-business strategy of Nespresso.

1. Market forces

1. 1. Global coffee consumption is growing World consumption has been growing at an average of 2. 5% annually since 2000. This development indicates an opportunity for Nespresso as consumers will purchase more coffee.

1. 2. Sustainability in the coffee market is a must An article on podia, food industry trends, stated that the current buzz words in the coffee industry are ‘organic’, ‘shade grown’, ‘sustainable and fair-trade certified’. According to the Organic Trade association, the organic coffee market is now a billion dollar industry. Research of UTZ certified indicated an increase in the first quarter 2010 of 35% in fair trade coffee consumption compared to the same period last year. The below figures show that growth started already in 2006. This trend can be an opportunity for Nespresso as long as they stay ahead of the competition.

2. Industry forces

2. 1 ‘Industry brothers’ are making moves Sara Lee makes coffee under the “Maison de Cafe” brand launched L’OR Espresso, which uses plastic capsule, retails at the equivalent of about USD 0. 37 in supermarkets. It fits the personal espresso machines from Sara Lee and the Nespresso system. The rising competition with a similar product is a major treat for Nespresso competitive position.

3. Key trends Social – Cultural trends

3. 1 Consumers want more status According to trendwatching. com sources of status in mature consumer societies are moving beyond the BIGGER, FASTER, HARDER sphere. The vast mass of increasingly sophisticated, increasingly wealthy, increasingly urban consumers are ever more try-out-prone, more demanding and more daring as they search for the next big thing or the next big STATUS STORY to dazzle or discuss with people (online). The implication on the Coffee market is that coffee drinkers have become increasingly sophisticated and are encouraged to expand their coffee palate by trying out specific blends and brews. This can be a major opportunity to build customer relationship for company as Nespresso.

3. 2 ‘Living’ and spending online According to CIA factbook 2008 the internet use of The Netherlands is located on the 26th place of world ranking list. According to research of The Next Web 2009, 16% of the Dutch people find it easier to buy online. 5% prefer a real life shop and 24% is neutral. This trend has major implication on the buying behavior of consumer and business therefore every business needs to focus on online development. Nespresso has adapted this trend into its business model and therefore it can be seen as an opportunity.

4. Macro economical forces

4. 1 US coffee market is changing Due to the current economical situation Starbucks faced a drop down in location in urban blocks. Home consumption is likely to increase as the credit crunch takes its toll on coffee shops. The market research company NPD Group’s Consumer Reports on Eating Share Trends (CREST) has found 75 percent of American workers rely on coffee convenience and will “only travel a quarter mile or less for their daily brew,”. This creates an opportunity for Nespresso product to enter the US Market.

4. 2 Coffee prices are rising Due to damaged harvest in Colombia the coffee prices increased with 30%. The world supply situation appears to be somewhat tight, particularly in view of the low level of world stocks (International Coffee Organization (ICO). Similarly, with growing world consumption, the replenishment of stocks may be limited. The rising coffee price is a treat for Nespresso coffee.  This analysis appraises the 8 building blocks of the business model. The strength or weakness is defined by if it Customer segments “The Customer Segments Building Block defines the different groups of people or organizations an enterprise aims to reach and serve (Osterwalder eg. )” Nespresso coffee & machines targets 2 behavioural segments: . Home ‘user’ Business2consumer 89%: Household 2. Out of home Business2business 11%: High-end restaurants, hotels, catering businesses, airlines or for offices. Both segments varying in needs and problems. The out of home segment is small and can be focussed on more Implication on ebusiness environment. Value proposition “The Value Propositions Building Block describes the bundle of products and services that create value for a specific Customer Segment” (Osterwalder eg. )”. Nespresso sells espresso machines and pods to the high-end of the market.

It can be divided into 2 values: * Quantitative value: exclusive coffee quality, great customer service, * Qualitative value: global brand community, exclusive customer relationship, and distinctive design of coffee machine, innovation, Nespresso has encouraged growth by marketing a lifestyle brand, promoting a premium coffee product through its exclusive sales locations and clever marketing. The value proposition is strength as Nespresso is seen as not only coffee supplier but also a lifestyle brand, which can be intergraded into the e-business strategy.

Channels “The Channels Building Block describes how a company communicates with and reaches its Customer Segments to deliver a Value Proposition”. Distribution Channels * Website (direct): It provides a 24-hour ordering system for coffees, machines and accessories in 23 different languages with orders shipped to homes or offices within 48 hours. * Shop (indirect): Nespresso offers tailored shopping experiences in exclusive boutiques & locations. * CRC (direct): Customers have access to coffee specialists via the Nespresso Club’s Customer Relationship Centers. Figure ..

Sales channels Nespresso Nespresso has the right mix of Channels to satisfy majority of their customers. Internet is direct channel that maintains control and high margin. Exclusive locations create brand experience. CRC will strengthen customer relationships and creates loyalty. Depending on logistics in the supply chain. Recently Nespresso changed its transport company, which resulted in enormous delays in delivery of online orders. The decency on transport companies, the limitation of locations and the expiring patent has major implication on the customer satisfaction.

Customer relationship “The Customer Relationships Building Block describes the types of relationships a company establishes with specific Customer Segments”. Nespresso Club membership reached in 2010 more than 7 million people worldwide. Nespresso states that they will roll out a new customer service model need imput Revenue streams “The Revenue Streams Building Block represents the cash a company generates from each Customer Segment “. fixed pricing stategy Nespresso has an average sales growth of 30% growth since 2000. Coffee is a major income of Nespresso.

Other resources such as coffee machines are smaller. Nespresso achieved major growth numbers in terms of revenue. Key Activities The Key Activities Building Block describes the most important things a company must do to make its business model work Key resources The Key Resources Building Block describes the most important assets required to make a business model work The concept (machine, capsule, service) is protected by 70 patents and allows Nespresso to create an economic model closed to competition. In 2012 those patents will expire which makes Physical and intellectual resources Human, financial) Brand Own production Key Partnerships ‘The Key Partnerships Building Block describes the network of suppliers and partners that make the business model work’. Nespresso Ecolaboration programme provides a networking framework to bring together key stakeholders, thinkers, consultants, technical experts, NGOs, business partners and others to collaborate around new ideas and innovation, which will serve to improve the sustainability performance of Nespresso. The Cost Structure describes all costs incurred to operate a business model

The Production Marketing Distribution Value driven company Conclusion Confrontation Matrix The OT’s and the SW’s are put into a confrontation matrix to evaluate their relationship with each other. A relationship occurs when a S or W will be intensified or weakened due to the O or T. This can be found by asking the following questions. * Does the O intensify or weaken the S? * Does the O intensify or weaken the W? * Does the T intensify or weaken the S? * Does the T intensify or weaken the W? Then the OT’s and SW’s will be scored upon the extent of the relationship.

The OT’s that have the strongest relation with the SW’s will be used to identify the strategic challenge. In order to give an idea of how the confrontation matrix works an example will be given:O: Growing harbour of Rotterdam versus S: Good business positioning Because of the growing harbour, the business in Rotterdam will grow which will bring more business guests. Because of their good business positioning, HR can anticipate very well on this O as they have a lot to offer the business guests. This is seen as a high relationship and therefore 3 points have been given. Following table shows the confrontation matrix.

Confidence Vs. Arrogance: Difference Between Confidence And Arrogance

The distinction between confidence and arrogance is a well-known concept. It is crucial to comprehend and delve deeper into this boundary to avoid crossing it. While individuals may identify themselves as confident, their behavior is what truly reveals their character. Both traits can be misleading, as they are often displayed through external manifestations, resulting in distorted perceptions. To truly understand the disparity, one must closely analyze these two traits.

Confidence is born from the knowledge and understanding that the forthcoming action is accurate, appropriate, and impactful. A person demonstrates confidence when they are thoroughly prepared for an exam or adequately equipped for a project to be submitted. They possess unwavering certainty that the anticipated result will align with their predictions. Nevertheless, they express this assurance through nonverbal means. Instead of words, individuals are able to manifest their competence through actions, allowing space to perceive the perspectives and convictions of others.

Confidence enables individuals to view situations from a different perspective, beyond their own viewpoint. It fosters adaptability and openness to change, whether it involves making collective decisions or discussing various perspectives on a specific topic. Confident individuals acknowledge their own talent and capabilities while recognizing that others possess equally valuable skills. They showcase this awareness to others, often creating an approachable demeanor that facilitates comfortable conversations and discussions.

Confident individuals express their ideas humbly instead of imposing them on others, allowing their peers the opportunity to share their own beliefs and ideas. They possess a deep respect for themselves and take pride in their abilities and possessions, while remaining aware that others also have similar qualities and belongings in this world. This mindset keeps confident individuals grounded and prevents them from crossing into arrogance, as they understand that conquering every situation is not always guaranteed.

Arrogant individuals lack the willingness to acquire knowledge or comprehend the consequences of the situations they encounter. They dismiss the viewpoints of others and solely concentrate on their own beliefs, excluding anyone with a different perspective. Additionally, they often rely on verbal communication rather than nonverbal cues and feel compelled to highlight their skills and abilities. Arrogance is characterized as an excessive sense of pride stemming from personal status or ego.

When arrogant individuals receive praise or engage in self-reflection, they experience a powerful positive emotion. However, this increased self-awareness often leads them to become excessively absorbed in their own thoughts, beliefs, and ideas during conversations. Consequently, the conversation becomes frustrating for all participants as it becomes one-sided. Modifying the perception these individuals have of themselves is difficult because it has been established with semi-permanent paint. Thus, changing this perception demands considerable effort.

While both confidence and arrogance may be misunderstood, a thorough analysis demonstrates their distinct differences. Arrogance emerges from an excessive self-centeredness conveyed through verbal and nonverbal communication. In contrast, confidence arises from self-awareness and the acceptance of oneself and others. Both arrogance and confidence acknowledge personal abilities; however, confidence also encompasses exhibiting and receiving respect, care, and humility.

Great Depression’s Influence On American Vernacular Dance

How did the Great Depression influence the evolution of American vernacular dance? In the Great Depression, the American dream had become a nightmare. What was once the land of opportunity was now the land of desperation. The Great Depression was an economic slump in North America, Europe, and other industrialized areas of the world that began in 1929 and lasted until about 1939. It was the longest and most severe depression ever experienced by the industrialized Western world.

Nevertheless, it had immense impact on the evolution of American vernacular dance by bringing jazz music and dance to the masses, raising the nation’s spirit through music and dance. The Great Depression hit hard, but it hit African Americans the hardest. They had been on the bottom rung of the economic ladder already before the Depression hit, and, although most had precious little to lose, prospects for even subsistence work were especially poor once the Depression was under way.

Many poor southern migrants continued to come north, crowding into neighborhoods already packed with people, competing for the fast-dwindling number of jobs. Black businesses failed, crushing the entrepreneurial spirit that had been an essential element of the Negro Renaissance until then. In the mid-1930s, as the Great Depression stubbornly refused to lift, jazz came as close as it has ever come to being America’s popular music. It had a new name now, Swing, and its impact was revolutionary. Swing, which had grown up in the dancehalls of Harlem, would become the defining music for an entire generation of Americans.

Record sales slowly started to increase as Americans began frequenting establishments with jukeboxes. Radio continued to be an important source of entertainment, but motion pictures were no doubt the favorite escapist entertainment. By mid-decade, Hollywood musicals would gain great popularity, which continued unabated into the 1940s. Jazz took a hard blow, as the rest of the country did, during the first half of the 1930s. Although there was still work to be had, especially for the best musicians in New York, those in other areas of the country “scuffled,” eking out a meager existence.

Bandleaders, whose orchestras were filled with great jazz musicians, like Louis Armstrong, Fletcher Henderson, Cab Calloway and Duke Ellington, would continue to find employment, although their repertoire would include a liberal amount of popular songs. Things would begin to change by 1935, the year that marked the beginning of the “Swing Era. ” Swing music reached new, white audiences when musicians like Benny Goodman began playing swing in ballrooms and theaters in major cities in the 1930s. Following Goodman’s success, other bandleaders began featuring more jazz arrangements and jazz solos.

Soon the country was swing crazy. Trombonist Tommy Dorsey had a million-seller record with Irving Berlin’s tune “Marie. ” Artie Shaw, Benny Goodman’s clarinet rival, had a million-seller with Cole Porter’s “Begin the Beguine. ” Dancing is a very big part of swing music. A person rarely ever thinks of swing music without swing dancing. It became popular at every event from New York’s swankiest nightclubs to school proms. Every portion of society found some form of swing music suitable for their dancing.

The term “swing dance” is commonly used to refer to a group of dances that developed concurrently with the style of jazz music in the 1920s, 30s, and 40s. The black community, while dancing to contemporary Jazz music, discovered dances such as the Black Bottom, Charleston and tap dance, which travelled north with Dixieland jazz to New York, Kansas City, and Chicago in the Great African American Migration of the 1920s, when rural blacks travelled north to escape persecution, Jim Crow laws, lynching and unemployment in the South due to the Great Depression.

Popular dances like the “Lindy”, “Lindy Hop” and “Jitterbug” appeared in popular nightclubs, Broadway musicals and movies like “A Day at the Races” (1937). The “Lindy Hop”, named after the pilot Charles Lindburgh’s first solo flight, was the first dance to include swinging the partner into the air, as well as jumping in sequence. Yet another famous dance that evolved was the “Big Apple”, which originated in a small southern town. A group circle dance, it gave couples the opportunity to show off, or “shine”.

It incorporated swing early swing steps and originally required a “caller”. Frankie Manning is accredited to bringing the Big Apple to New York and popularizing the dance with white culture. The popularity of these aforementioned dances during the Depression can be easily interpreted as the psychological comfort it gave of “strength in numbers” and because it was more than just a dance: it was a unifying experience that provided healing and joy at a time when there was little to celebrate.

In the late 1930s, Katherine Dunham had one of the most successful dance careers in American and European theater of the 20th century and has been called the “Matriarch and Queen Mother of Black Dance”, production. One of her early appearances was in Cabin in the Sky, staged by George Balanchine that ran for 20 weeks in New York, with Dunham in the stunning role of “Georgia Brown”. Another famous role as a seductress during this period was the “Woman with a Cigar” from her solo role in the revue Shore Excursion.

Her sense of rhythm, theater and costuming, as well as her choreography and dancing, put serious African American vernacular dance on the map once and for all. Another example would be Bill “Bojangles” Robinson, who was an American tap dancer and actor of stage and film. Audiences enjoyed his understated style, which eschewed the frenetic manner of the jitterbug in favor of cool and reserve. Rarely did he use his upper body, relying instead on busy, inventive feet and an expressive face.

A figure in both the Black and White entertainment worlds of his era he is best known today for his dancing with Shirley Temple in a series of films during the 1930s. According to Stearns’ Jazz Dance, Robinson was responsible for getting tap dance “up on its toes. ” Early tap was mostly ‘buck and wing’ a flat-footed dance style. Robinson did his dancing on the balls of the feet. Another important aspect of dance in times of the Great Depression was the dance marathons of the 1930’s, which were also known as “bunion derbies,” and “corn and callus carnivals. Promoters called them “walkathons. ” Social dancing had only recently acquired a veneer of respectability through the efforts of wholesome married dance teams like Vernon and Irene Castle. At a time when many churches still considered dancing sinful, “walkathon” was a less threatening term. Nevertheless, today we remember these endurance contests of the Great Depression as “dance marathons. ” To break the monotony of constant dancing for spectators, promoters added distractions, usually performances both by contestants and by guest artists.

They invited professional dancers and teachers to enter the contest, often paying them to participate. Specialty acts from vaudeville and burlesque, exhibition dancers, even boxing matches, were all added to the spectacle. Promoters would assure a good show by hiring eccentric and ostentatious personalities sure to create exciting situations. They arranged for “unexpected” guest appearances by local celebrities such as theatrical agents and performers. These marathons offered non-stop entertainment hosted by a Master of

Ceremonies and threaded with performances and specialty numbers, live band music, and audience participation, in addition to the contest element. For all contestants, participation in a dance marathon meant a roof over their heads and plentiful food, both scarce during the 1930s. President Herbert Hoover’s promised prosperity “just around the corner” eluded most Americans, but dance marathon contestants hung their hopes on the prize money lurking at the end of the contest’s final grind. Hollywood, in turn, also played a valuable psychological role during the Great Depression.

It provided reassurance to a demoralized nation. Even at the deepest depths of the Depression, 60 to 80 million Americans attended movies each week. Hollywood responded to the economic anxiety that dominated the lives of Americans during the Depression by producing films that maintained a self-conscious optimism. Like the recording industry, which recognized the value of the reassuring stability represented by the light, uncomplicated music of artists such as Bing Crosby and Guy Lombardo, movie producers also sensed that Americans wanted to forget their troubles, not be reminded of them.

Only rarely in mainstream music and film did the grim daily realities of life and the destitution of the laboring class find expression. The common hardships of love and work in the soulful tunes of Ethel Waters, Ruth Etting and Lead Belly, the uprooted American working class, black and white, used these musical forms to hold on to a sense of identity amidst the uncertainty of a changing world. Technology and mobility brought these musical traditions into contact with one another, birthing new forms of expression and cherished musical memories.

In the face of economic disaster, the fantasy world of the movies sustained a traditional American faith in individual initiative and in government and upheld a common American identity of transcending social class. It provided them with a welcome respite from their daily hardships. Musicals in the 1930’s gave people more realistic visions of aspiration and attainment. Stars such as Judy Garland, Shirley Temple, Ginger Rogers and Fred Astaire became models of strength, courage, charisma, vulnerability, and triumph as they sang and danced their way into the dispirited hearts of the American public.

During the thirties American music was forever changed by new technologies and industrial processes. The improved fidelity of phonograph recordings, electrical amplification, jukebox, radio and film coupled with aggressive marketing techniques fostered the exponential growth of the entertainment industry and the commercialization of popular music. The 1933 Repeal of Prohibition led to the opening of drinking establishments, which in the mid-thirties would make use of the recently improved technology of the jukebox to entertain and attract patrons who would listen and dance.

The processes of the recording industry fused with the technology of the radio, jukebox, and phonograph altered the music of black and white vernacular musicians from the southeastern and western states. Many regionally popular players of traditional music who were from the underclass began to see the opportunity for a new career recording their songs for a national audience. Phonograph records, jukeboxes and radio allowed the musical styles of regional musicians from all over the country to “cross-pollinate” with each other combining approaches, styles and instrumentation in new ways.

Not until the mid thirties would the recording industry began to metabolize its tenuous relationship with radio and fully recover from the economic strain of the Depression. Recording opportunities simply vanished for many underground musicians during this downturn in the industry. But the doors had been opened and it would not be long before the labels recalled the profit potential in the marketing of traditional, vernacular and ethnic musical expressions.

Nonetheless, new emerging technologies like the jukebox during the Great Depression became the one bright spot not only for the record industry, but for all people. For the public, a nickel would pay for six plays and like the movies of the day provided a few minutes escape from the depression. This product of industrial development, the jukebox was the technology largely responsible for saving the American music industry during difficult economic times. More importantly, through the jukebox Americans experienced music socially.

With the most basic of commercial exchanges, placing a nickel in the slot, Americans chose what songs they would listen to on a given night, what songs they would dance to on an evening out, what songs best provided a soundtrack for their lives at that moment. Americans literally purchased a sense of identity from a vending machine of aural memory. In conclusion, I believe that the Great Depression influenced the evolution of American vernacular dance greatly. American popular music and dance from the 1930’s reflects the cultural and social conditions that shaped the American identity during the period.

The popular music and dance of the thirties can be used as a lens to better understand the collective memory of the American people during a decade marked by the Depression, emerging technologies like jukeboxes and the growing population of cities as many Americans relocated from rural areas. It meant that millions of people all over America were able to hear and feel the music through dance. Moreover, jazz, which had always thrived in adversity and come to symbolize American freedom, would be called upon to lift the spirits and raise the morale of a frightened country.

And in the process, it would begin to break down the barriers that had separated Americans from each other for centuries. Bibliography Dickstein, Morris. Dancing in the Dark: A Cultural History of the Great Depression, W. W. Norton & Company; 2009. Dills, Ann. Moving history/dancing cultures: a dance history reader, Wesleyan University Press, 2001. Young, William H. The Great Depression in America, Greenwood Publishing Group, 2007. Stearns, Marshall. Jazz dance: the story of American vernacular dance, Da Capo Press, 1994.

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