My team created a new business model for Nest Labs using the business model canvas. We decided to introduce a new service to be integrated with Nest Protect and other Nest products. This service, called SafeNest, will operate as a safety and security system for a low subscription fee. To use SafeNest customers must have a Nest Protect. Hardware used to enhance the SafeNest service are sensors and a specialty Nest/Jawbone bracelet we invented called Nestlet.
The purpose of this service is to increase consumer investment in the Nest system. As the leader and pioneer of the "Internet of Things," our strategy is to grab as much Home Automation market share as possible, as quickly as possible before our Apple launches the HomeKit. This service will also steal market share from the Home Safety and Security market (ADT, LifeAlert).
2. Company Background
Founded by Former Apple engineers Tony Fadell and Matt Rogers in
2010
First product - Learning Thermostat in 2011
Google acquired Nest Labs on January 14, 2014 for 3.2 billion dollars
Currently not publicly traded
By summer 2015, Nest plans to sell 85,000 thermostats monthly
4. Trends
Societal
“Going green”
Buying local
Do-it-Yourself
Social responsibility
Technology
Millennials – early adopters
“Internet of Things”
Mobile
Economic
Millennial
spending power é
Industry
Smart Home market é
Energy efficiency/LEED certified
buildings
Automated
entertainment
and
security
systems
5. KP
• Nest Pro
• Google
• Government
• Utilities
Companies
• Distributions
• Home
Appliance
Developers
KA
• R&D
• Production
VP
• Innovating
home
accessories to
be more energy
efficient,
convenient,
secure and safe
by reducing
cost, and being
customizable
CR
• Nest Pro
• Customer
support
CS
• Family
Households
Owners or Renters
Technologically
Advanced
Middle to Upper
Class
KR
• Research and
Development
• Talented
Employees
• Intellectual
Properties
CH
• Home Depot
• Lowes
• Apple
• Target
• Nest Online
• Best Buy
• Amazon
• Online
Electronics
Retailers
C$
• Manufacturing and Distribution
• Marketing and Sales
• R&D
R$
• In store Sales
• Internet Sales
• Google
Current Business Model
6. SWOT
Strengths
• Interconnectivity
through wifi
• Backed by Google
Weaknesses
• Few product offerings
• Recalls on previous
products
• Google’s public image
Opportunities
• Apartment complexes/
office buildings/hotels
• Growing Smartphone
industry
• Security services using
current products
Threats
• Competitors
• Renters
• Viruses and hackers -
Nest platform and
products
7. Challenges
Competitors
Na1onal
share
of
first-‐1me
home-‐buyers
is
slipping
Minimal investment in
the home’s
infrastructure
Solution
Renters
Grab
as
much
market
share
as
possible
as
quickly
as
possible
by
crea1ng
a
grab-‐and-‐go
ecosystem
of
smart
devices
and
appliances
for
the
home.
10. New Business Model
KP
• Insurance
Companies
• Emergency
Services
• Nest Pro
• Google
• Government
• Utilities
Companies
• Distributions
• Home
Appliance
Developers
KA
• Providing
Smart Home
Services
• R&D
• Production
VP
• Innovating home
accessories to be more
energy efficient,
convenient, secure and
safe by reducing cost,
and being customizable
• People, Planet, Profit
• Providing a service to
focus on human safety,
Protecting the planet
with our innovative
technologies, Gaining
profit through this
service
CR
• Nest Pro
• Customer
support
• Safe Nest
Automation
Service
CS
• Millennials
(17-34)
• Family
Households
Owners or
Renters
Technologically
Advanced
Middle to Upper
Class
KR
• Server
Systems
• Research and
Development
• Talented
Employees
• Intellectual
Properties
CH
• Home Depot
• Lowes
• Apple
• Target
• Nest Online
• Best Buy
• Amazon
• Online
Electronics
Retailers
C$
• Manufacturing and Distribution
• Marketing and Sales
• R&D
• Communication servers
R$
• In store Sales
• Internet Sales
• Safe Nest Subscription
• Nestlets
• Google
16. Advertising
Short Commercial
spots on Youtube
Parents are always trying to
make everything safer for us.
Now, let’s give back.
Get your parents a Nest
Protect with Safe+Nest.
17. Cause Marketing
5% of our annual subscription fee will be
destined to their local fire departments
Fire departments
can allocate these
resources to address
their main issues
It’s all about
giving back…
19. Product Placement
Modern
Family
Chicago Fire
Arrested
Development
The audiences of these shows comprise substantial
millennial viewers and reflect their overall social and
cultural attributes
21. Social Media
#SafeNestSelfie
1 winner per
social network
Take a selfie with your
NestProtect and post to social
media with the hashtag
#SafeNestSelfie for a chance to
win a Nestlet.
22. Guerilla Marketing
• Dance to “Staying Alive”
• Nest Protect with Safe Nest
saves lives
Time Square Fire Fighter Flash Mob
24. Contingency Plan
Initial revenue generated from SafeNest will
be allocated to a precautionary War Chest
Preventive measure to solve any potential issues
encountered with first generation adoption of
Safe+Nest
We will be
prepared!
