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my name is Alex Osterwalder Im the lead author of business model generation and co-founder of strategies accom Im going to walk you through the business model of Nespresso a company that sells coffee in the espresso business so lets look at the value proposition first its composed of two products the Nespresso machine and the pods that go with it were going to look at the distribution strategy that Nespresso has they sell the machines to retail to households which means they earn a one-time transactional sales from selling the machines most of that money goes to the key partners the machine manufacturers who they work together with then for the Nespresso pods they have a totally different distribution strategy they only sell the pods through their own channels started out with mail-order and call center then they built Nespresso comm and today in the biggest cities of the world youll find espresso stores as well this is interesting because it meant that they had to build distrib
