Based on the research of Nest, the presentation answers the questions of what made them successful and what made them fail or continue to succeed.

2. Tony Fadell Matt Rogers

3. What is Nest?
• Nest produces an America home
automation producer of
programmable, self-learning,
senor-driven, Wi-fi-enabled
thermostats, and security system
• It Function based on a machine
learning algorithm
• The most efficient system that
controls indoor air condition. It
save Energy

4. Functionality
Revolutionized home energy use with a smart thermostat
that learns a homeowner’s pattern and schedules itself to
maximize energy efficiency with thermostat setting.
Keep home from hazard situations such as fire

5. How did they fund themselves in the early day?
• Tony Fadell and Matt Rogers establish the Nest lab, After a year and half studying and designing the first
thermostats. His genius idea quickly recognized by Google, Google funded Nest in January 2014 for $3.2B.
Who were key early Investors, and Why?
• Google
• Google has a project called Google Ventures which is a separate branch of Google that provides seed,
venture, and growth-stage funding to what they consider the best companies.
• Google did investment to Nest because Nest has a power to make a big impact on the world and consumers’
lives.
Who were the customers?
• The idea came when Fadell was building a vacation home and found all of the available thermostats on the
market to be inadequate, motivated to bring something better on the market.
• Housekeeper, Family, Energy conscious, middle income, homeowners

6. What were their biggest Crises?
• Nest were trying plenty of sustainable product. A reason for this was that they had an “unlimited budget”
and had grown from 280 to 1200 people. Nest CEO Tony Fadell may have had a vision of an eco-system like
Apple’s. Presumably the strategy was to attempt to preempt the market before another eco-system took
over.
• In February of 2016, the Federal Trade Commission’s Division of Advertising Practices opened an
investigation into whether Nest Labs, Inc. violated Section 5 of the Federal Trade Commission Act, 15 U.S.C. §
45, in connection with Nest’s decision to shut down the services necessary to operate its “Smart Home Hub”
on June 19, 2016. All customers were offered full refunds and the investigation was closed On July 7, 2016.
What was their exit?
• Google
• Nest became part of Google’s hardware group.
How are they doing now?
• It generated $726 million in revenue in 2017 and an operating loss of $621 million.
• Nest is earning money but it does not achieve the desired effect.

7. What is their current "molecule"?
3rd gen thermostat
• 40% bigger and clear with smaller pixels that make everything sharper
• More temperature sensors
• make installation even easy
• Protect your privacy and secure your data

8. Reference
• McCracken, Harry. “With Its CEO's Exit, Nest's Reintegration into Google Is Complete.” Fast Company, Fast
Company, 18 July 2018, www.fastcompany.com/90204088/with-its-ceos-exit-nests-reintegration-into-
google-is-complete.
• McCracken, Harry. “With Its CEO's Exit, Nest's Reintegration into Google Is Complete.” Fast Company, Fast
Company, 18 July 2018, www.fastcompany.com/90204088/with-its-ceos-exit-nests-reintegration-into-
google-is-complete.
• Wollerton, Megan. “Nest CEO's Exit Could Be Just What the Google Smart Home Needs.” CNET, CNET, 18 July
2018, www.cnet.com/news/nest-ceos-exit-could-be-just-what-the-google-smart-home-needs/.
• Nest. “Support.” Nest, Nest Labs, Inc., nest.com/support/article/Troubleshooting-strange-heating-and-
cooling-behaviors.
• Wollerton, Megan. “Nest CEO's Exit Could Be Just What the Google Smart Home Needs.” CNET, CNET, 18 July
2018, www.cnet.com/news/nest-ceos-exit-could-be-just-what-the-google-smart-home-needs/.