There’s something remarkable about the “Tesla Effect” in the way that it fosters innovation not only on segments that the company is already competing in but in markets that the electric car and energy company is still yet to enter. This seems to be the case in the home HVAC segment, with a recent report from Japan stating that air conditioner maker Daikin is now innovating its business model to prepare for the likely entrance of Tesla into the home HVAC space.
According to a Nikkei Asia report, Daikin has launched a smartphone-based air conditioning service in Tanzania, Africa, that would allow users to turn on their AC units only on days when they need it. Under this business model, customers would no longer need to purchase their actual air conditioners. Instead, they would simply have to pay an initial installation fee of $77 and about $1.40 per day’s use of the machines.
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Taro Mitani, Daikin’s head of collaboration with startups, noted that the new business strategy is part of the company’s attempt to try new things and embrace more digital solutions. “We wanted to try a new operational model,” he said, noting that the plan is to get 50,000 subscriptions to start, possibly for businesses like beauty parlors and restaurants.
The unique subscription model came about as a...
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