Of the challenges facing Nest, which one do you think is the most threatening? Explain your answer.

In the mid-2000s, Tony Fadell was building his dream house. He was working at Apple, where he was instrumental in the launch of the Apple iPod and iPhone.

Fadell took his time building the house and involved himself in every detail. One thing that frustrated him, of all things, was a lack of good choices for thermostats.

Many things in the home had changed for the better over the years, Fadell thought, but thermostats had remained basically unchanged. They were ugly, difficult to program, and couldn’t be adjusted remotely.