What is Eero's competitive advantage and what are the market mechanics that would prove or disprove that advantage?

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What is Eero's competitive advantage and what are the market mechanics that would prove or disprove that advantage?

Hello! Thank you for your request for insights into Eero's competitive advantages and the market mechanics supporting those advantages. Essentially, the mesh WiFi market is inundated with competition at the moment and unique features can make or break a product's success. Eero's product line isn't as unique as it once was, but it's quick to make updates and get ahead of the curve with new product features. Its newest option, Eero Plus, is a subscription service that sets it apart in the market and has room to grow in future updates.

Eero is a home WiFi company that produces hardware meant to create a "WiFi mesh" that ensures every inch of your home is covered with reliable WiFi. Their packages include different variations of their main products - eero and eero Beacon - depending upon home size. They also offer individual "a la carte" sales of each product to expand existing systems.

According to Consumer Reports, Eero's main competitors are Netgear's Orbi and Luma. Basic packages from both companies come in at $100 less than Eero's basic package, although the prices of all three units have dropped since the Consumer Reports article was published. Mesh WiFi systems are becoming more popular as more household devices need WiFi, and there are few holes left in the market. Linksys, Google, and TP Link, among others, have joined the market with competitively priced packages.

1. Ease of set-up - The Eero system is fast to get started. According to Eero's website, it takes less than 10 minutes to get the system up and running.

2. Singular focus - Because Eero only makes mesh WiFi products, they can concentrate on making them better than anyone else. Over the last year they pushed out nearly 20 updates for added features and security, issues that bigger companies, like Netgear, grappled with.

3. Simple app - The app used by Eero customers to control their WiFi networks is easy to use, even for robust controls, and aids both in quick set-up and daily use.

4. TrueMesh Technology - Any good mesh WiFi system will have access to both 2.4GHz and 5GHz radio bands, Eero's TrueMesh tech is able to switch between them automatically and it finds the best pathway for data and quickly changes the route as you use it. This keeps devices working at the highest possible speed even when there are multiple devices firing at once.

5. Added tech value - Eero's second generation devices are on the market now and offer a new subscription service with added security and filter features. For $10 a month (or $100 a year), Eero will block security threats, such as phishing attempts, at the network level. The service also allows for family filters to block inappropriate content. The service is unique to Eero and accounts for additional revenue. The company plans to add more features to its premium service, equating itself to Amazon Prime.

The new technology offered in the 2.0 system includes use of a radio channel system called Thread. The connected set-up and control of these devices, plus the subscription plan design, and hints from the company's creator, all lead tech experts to assume a smart home system may be in the works for future updates of the Eero software. An all-in-one home assistant and WiFi network system isn't available from competitors, and would theoretically eliminate the need for two separate devices. This cuts down on cost and complications for consumers and would likely be an attractive add-on.

Netgear's Orbi - This device beats the Eero, and most WiFi devices, in speed. The Orbi can hit speeds of 1,266Mbps (400Mbps on the 2.4GHz band and 866Mbps on the 5GHz band). By comparison, the newer Eero devices tap out at 240Mbps at 2.4 GHz and about 600Mpbs at 5 GHz, or a total 840Mbps.

Linksys Velop Tri-band AC6600 - This system supports over 6,000 sq feet of space out of the box, making it a great bet for larger homes. Eero's similarly priced and outfitted system covers a "2-4 bedroom home", which is too vague for a direct comparison, but likely not 6000 sq feet.

Luma - The Luma devices are known for their customizable parental control features. There are five levels to choose from, plus the ability to freeze WiFi across the entire device, all from the app. The Eero plus service does include parental controls, but the extra cost means it's more accessible with the Luma plus the Eero essentially applies SafeSearch to individual devices, which is less complex than the Luma offerings.

Google - The biggest selling point of the Google device, other than name recognition, is aesthetics. The devices are modeled after the Google home set-up and are meant to be placed in plain sight - almost as if they are decorations themselves. Eero's devices are also attractive, but they are not really meant to be on display.

It's hard to say which tech giant will reign supreme in the world of mesh WiFi. Certainly Eero's early entry into the market and dependable features, along with its drive to update have made it a favorite among fans. In a saturated market with competition from large and niche companies alike, Eero sets itself apart with simple, easy to use technology that is frequently updated. The new Eero plus subscription service, and hinted at future plans for a smart home system, both spell continued opportunities for growth and added options the competitors don't offer.

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