Auckland University of

Technology – MBA - ABP

Paul F. Haynie
Student #14859755
February 2016
 Vivint Internet 2.0

“Smart Companies fail because they do everything right. They cater to t high-
margin customers and ignore the low end of the market, where disruptive
innovations emerge from.”

-Clayton Christens
• Introduction
• Competition and Incumbents
• SWOT Analysis
• Bundling and Pricing
• Content Providers
• Sales Pay Scale
• Summary
 Outcomes and Deliverables
• Purpose
– Discovery, knowledge, information gathering
– Structure, understanding, insight
• Goals
– Costs, benchmarks, strategic partnerships
 Incumbents and Competition
• Breaking the Bundle
• Apathy
• Pain of Change/Unknown
• Email, billing, existing discounts
• Is this a mouse trap?
 Mousetrap?
“Build a better mousetrap and the world will beat a path to your door.”
-Ralph Waldo Emerson

Bret Taylor of Google Explained…

• Incumbents have entrenched distribution channels
– Huge structural advantages
– Customers don’t know what they are paying for their mousetraps, or if they are paying at
all
– Incumbent business model makes it difficult, or impossible, to compete head-to-head
• Habits die way harder than expected
– People care less about the trap and there are possibly high costs to switch
– Some ways, the quiet, steadfast competitor is indifference
• Customers have to care, which is harder than it looks
– The main problem is differentiation
– Hard part is getting the customer to see the differentiation and to appreciate it enough to
make a purchasing decision.
– Rule of thumb. You have to be 10x better, not just 1x
SWOT
 Bundle and Pricing
• The BIG 3…Speed, Reliability, and Price
• What makes the bundle work for Vivint
– Same Bill (one bill for all services)
– Discount is ongoing as long as service is bundled
– A one-stop shopping experience (provide desired
services so there is no need to shop other
providers)
 Content Providers
• Don’t be mistaken, you will need a partner
 Sales Pay Scale Dirvers
• Percentage mix of packages (50, 100, 1,000
mbps)
• Attachment of additional services (phone, TV,
router, security, etc.)
• Quality of accounts (attrition)
• Quantity
• Density (tower, seed, hub)
• Activation, Attachments, Billing, Contracts
 Summary
• Speed, Reliability and Price
• Break the incumbent/build a Vivint bundle
• Power of the incumbent
• The Vivint mousetrap must be 10x better, not just 1x
• Pascale must drive desired results

• Questions?
“A Satisfied Customer is the best Business Strategy of all.”
-Michael LeBoeuf