Nespresso: PESTLE ANALYSIS Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Nespresso: PESTLE ANALYSIS Case Solution

Legal Factors

Independent judiciary:

Switzerland exercises an independent judiciary, it lets people be protected regardless of their nationality and the companies operating there have enough rights to operate their business and make-profit accordingly. Nespresso took advantage of this opportunity in order to have success in the market.

Decision Makers:

Nespresso has made its policies based on the economy and the society. Government does not constantly interfere in the day to day business operations of Nespresso, so it is free to handle its business according to its choices.

Gender Equality:

Switzerland believes that there should be no pay disparity between men and women.Employer and the employees can negotiate salaries individually or collectively. Nespresso has to comply with this act in order to have goodwill among the customers as well as over around the country.(David, 2020)

Strategic Choices:

Fewer Restrictions

Due to fewer complications from the government; Nespresso enjoys Greater Autonomy which empowers its employees from a tremendous amount of burden and gives them time to prepare for emergencies. Due to decentralization; Nespresso can make more efficient decisions in the favor of its employees as well as the overall growth of the company, in a combination with fewer restrictions, which Nespresso can utilize for its expansion.

Political stability

This can be considered as a golden opportunity for Nespresso, because it affects investors and consumers’ confidence, which results in a wider impact on the economy. It helps in creating a favorable business environment as well.

Direct involvement of people

As people are directly involved in decision making of the government. Nespresso should try its best to capture as much market as possible so that people will decide in its favour, and slowly and gradually it will help Nespresso in ruling out the competitors as well.

Good relationship

Due to Switzerland’s great reputation all over the world; it is easier for Nespresso to expand in more countries, which gives it an access to enter into new markets and access the local talent. It also helps the company in increasing its business growth, which enables it to stay ahead of the competition with fewer cultural barriers.

GDP rate

As growing GDP rate will help Nespresso in generating more wealth and creating more employment in the market. Better GDP results in more consumer spending, which gives high sales potential to Nespresso, increasing the chances for the investors to get attracted.

Skilled labor force

Skilled workers are experts at their jobs and they tend to help Nespresso in maximizing its productivity, because they are experts in their field who try their level best to improve the company’s businesses profitability and reputation, which results in profitable growth.

Low tax rate:

Nespresso can encourage investment and discourage profit shifting because of the low tax rate. Additional investment helps it in growing its capital stock, demand for labor, higher productivity, employment output and wages.

Modernization:

Different types of technology help Nespressoin improving its overall responsiveness. It has an access to all business-critical systems and is quick to respond to emails, phone calls, and to collaborate with others in real-time.

Latest Technology

With the help ofthe latest technological advances;Nespresso has greater ways to increase its productivity and incorporate better communication, which can help it in saving business costs by automating its business operations and processes.

Greenhouse

Nespresso is addressing the climate and environment issues, which is enabling it to have a good business sense. Greenhouse gas targetto save money through efficiency in operations and energy improvements are some of the steps taken by the company in order to regulate its carbon footprint. The company has experienced a reduced production costs and an increased products’sales, which has made it more efficient and competitive.

Gender Equality

Nespresso actively supports gender equality,which helps it in making good business decisions and earning more money,because it has been proven that teams make better business decisions to up-to 87% of the time, and the teams with less diversity make productive choices for their companies.

Recommendations:

To maintain its position in the market, Nespresso should make a decision according to the external factors mentioned above, as it will not only help it in having growth but would also make it more reputable in the eyes of consumers.
According to the recent studies; consumers do not prefer such companies that do not pay taxes. Nespresso should follow the rule of law and pay its taxes religiously.
People are attracted to coffee shops with more verities that satisfy their tastes accordingly. Nespresso should work on research and development department in order to have a better understanding of the consumer’s demands.
Attractive shops attract customers.Make your products more catchy to grab the customer’s attention.
Better quality leads to better sales, word of mouth can help Nespressoin gaining customers more quickly.(WARD, 2019)

Conclusion

Overall the market position of Nespresso is quite strong, but still not everyone is aware of its products Nespresso should work actively on its marketing skills in order to promote its products with an efficiency. Nespresso is operating its business successfully in almost 84 countries, and the company should emphasize on further expansion, because now it has a sustainable position which it can utilize to )tap new markets for further growth.(CLUB, n.d.)................................

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Nespresso: PESTLE ANALYSIS Harvard Case Solution & Analysis