SWOT

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Opportunities

Consumers are purchasing fewer items overall and are focusing on high quality products when they shop

Baby boomers are retiring and purchasing second homes in hot climates

New technology is raising living standards in the US and is further driving economic growth

Unemployment is decreasing

Consumer confidence is rising

Tech-savvy consumer base is growing

Awareness of energy conservation and energy management is growing

Cost of energy is increasing

Green consumer base is growing

Economic outlook for green building is improving

Pending regulatory environment and utility programs favoring WiFi enabled thermostats and demand management

Strengths

Able to expand product line; diversify into other emerging technologies, such as microinverters, refrigeration controls, etc

Close to finalizing compatibility with HVAC systems in Europe and Asia

Innovative marketing approaches using consumer research

Strong partnerships with academics, NGOS and environmental groups

Unique alliances with industry groups including utilities, tech, renewable energy, construction

Strong partnership with Lowe's retailer

Positve company culture and employee relationships

Solid venture capital funding for continued innovation and growth

Developing new proprietary technology

Furthering North American market penetration

Volume can be easily scaled to meet increased commercial demand

Supply is meeting increasing demand

Production is strong with minimal errors

Innovative technology and mobile, easy to use interface

Brand becoming more recognizable

Product is unique and leading the market

Trends

Demand for streamlined attractive design and new interactive technologies

Consumers want mobile and immediate access to information

Acknowledged importance of saving energy and monitoring savings

Threats

Regulations regarding labor, wages, taxation and privacy

Political uncertainty and 2012 election year implications

Lack of confidence in real estate sector

Instability of US and World Economies

Rising commodity prices

Unknown if foreign exchange rates and tariffs will affect imports or exports in future

Weaknesses

Honeywell lawsuit could compromise technology and capital

Competitors are developing similar applications and technologies

Marketing should be diversified beyond current demographics and expand to secondary targets

Current technology is limited to N. American marketplace

Need to establish relationship with Home Depot

High overall unit cost in relation to other programmable thermostats available at Lowe's

Product line needs diversification, quickly