The Nest Digital Thermostat Nest, which was acquired by Google in 2014 for $3.2

Question

The Nest Digital Thermostat Nest, which was acquired by Google in 2014 for $3.2 billion, is an influential player in the smart home industry. The company pioneered the digital thermostat and smoke detector "The Nest thermostat creates value by digitizing the entire home-temperature-control process-from fuel purchase to temperature setting to powering the heating, ventilation, and air-conditioning system-and connecting it to Nest's cloud data services."1 The thermostat aggregates data on real-time energy usage and shares that vital information with utilities, which use it to improve energy consumption forecasts and achieve greater efficiency. The retail price of a Nest thermostat is double or triple that of conventional thermostats. Through its Work with Nest" program, the company is opening up its digital cloud program to devices from other providers. So far, partners include Whirlpool and Mercedes Benz. The connection with Mercedes allows drivers to adjust the Nest thermostat to insure a comfortable temperature upon arrival home. The Whirlpool integration provides the means to schedule wash and dry cycles during nonpeak hours. Using its digital cloud platform, Nest can enter other sectors by opening up its digital cloud platform to devices and services from other providers. Recent reports are that Nest is partnering with ADT, the world's largest home security firm. 2 The two companies could connect Nest's Internet-connected thermostat with ADTs Pulse system that allows its customers to control their security system through a mobile app Iansiti and Lakhani, "Digital Ubiquity," p. 95 2"Google's Nest Close to Partnering with World's Largest Home Security Company, ADT, Forbes, December 22, 2014, accessed at http://www.forbes.com on January 19, 2015. Assess Nest's potential in other market segments or new market sectors

Explanation / Answer

Nest has huge potential in different market segments due to its unique product and technology that can be replicated in many sectors. Few of them are as follows:

1. Automobile: Nest technology can be used in this area.

2. FMCG electronics: Here also it cans be used in devices like, refrigarators, AC, laptop, TV and etc.,

3. Offices and Shops: Nest technology can use the existing devices in these places.

4. Mobile Applicaiton: It can come with new mobile app which can give the information on the applicances and place temprature with this app.

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