Question

1. Consider the company Nespresso. What is their single biggest strength? Why do you think this is their biggest strength? What advantage does it give them over the competition? Is it a sustainable, competitive advantage? Why/why not?

Answer 1

Nespresso is a multinational,diversified company which has it's headquarters in Switzerland. It has many strong points of geographical advantage, international brand balue, portfolio and diversified products. However, he biggest strength of the company is their Research and development.
The company spends almost 2% of it's annual revenue on R&D which gives an upper hand to the company over it's competitors who fail to spend so much amount on R&D.
Not only this the company has research centres all around the world and almost 5000 employees work in it.
This strength has led to company to have innovation in their products, made more closer to the customers preferences by enhancing the products quality and led the company to become a leader in health, nutrition and wellness.

Yes it is a sustainable competitive advantage as this helps the company to expand and become a market leader by bringing changes in the products and leading to innovation which marks the future of the company. The company highly relies on it's R&D and it's non negotiable for it compromise on customer preferences and experience.