This article aims to examine the concept of business model innovation and to discuss the design of the key elements. Based on a detailed case study of Nespresso, it seeks to outline how business model innovation can be implemented successfully.
Based on a theoretical conceptualization of a business model, the authors conduct an in‐depth case study to draw conclusions for a successful implementation of a business model innovation.
A business model innovation comprises five components: an innovative, unique positioning, a consistent product and service logic, an appropriate value creation architecture, an effective sales and marketing logic and a profit formula that works. Success is based upon a unique, innovative and coherent design of the business model's components.
Based on Nespresso's business model, this paper illustrates what a business model innovation is, what its components are and how they should be designed to create and capture value.
Matzler, K., Bailom, F., Friedrich von den Eichen, S. and Kohler, T. (2013), "Business model innovation: coffee triumphs for Nespresso", Journal of Business Strategy, Vol. 34 No. 2, pp. 30-37. https://doi.org/10.1108/02756661311310431
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