In today’s world we are surrounded by new technologies. Research done by Felix Richter and published on statista.com shows that Americans ages 18 and older spend on average 11+ hours a day on electronic devices. Such focus on smart phones, smart TVs, smart watches, etc. has helped make way for smart apartments.
In a recent Bloomberg article called, Putting the App in Apartment, Kyle Chayka discusses how the world of apartments is beginning to change. One company called Common, is creating the future of apartments in New York. From your IPhone or IWatch you can unlock your apartment door, turn the lights on and off, change the temperature in the room, etc. Another competitive advantage of Common is the month-to-month rental contracts and the idea of co-living. Co-living is the idea that you can stay a month in one of Common’s apartments in New York and then the next month live in one of their apartments in Los Angeles or another city.
Common is able to increase their profits by being one of the first-movers to this technology focused living. By being the first to install innovative services, Common will have a leg up on the competition that is using outdated, inconvenient services. This allows them to set a high price and develop a strong network with the suppliers of new technologies before competitors enter the market.
Common needs to be aware of the second-mover advantage. New York has a $50 billion rental market with several large players that could potentially kick companies such as Common out with predatory pricing. It will be important for Common to maintain their competitive advantage by capitalizing on their technology network strengths.