Dropbox: It Just Works
Dropbox: “It Aloof Works” (HBS 9-811-065) Kunal Sharma Advanced Entrepreneurship March 11, 2013 100410018 Word Count: 854 Question 1 a) The acumen that Dropbox is such a accepted abstraction is because anyone in the apple can be a client of Dropbox. It can be an alone aggravating to save and admission their pictures on altered platforms or it can be a bunch close who uses the artefact as a “file collaboration” software aural the firm. “The abstraction is to get bodies application it central companies after IT’s permission. Once IT sees that Dropbox is in abundant appeal and that it works reliably, we’ll get certified for use beyond the company. (Pg3, P3, Dropbox: it aloof work’s, 2012). So basically the client can actually be anyone with a allegation for accessible admission to accumulator of abstracts beyond assorted platforms. Usually in alternative industries the buyers would be a baby accumulation of bodies or companies for whom the artefact was accurately fabricated and marketed for, as able-bodied as anniversary industry tries to abduction a allotment of the bazaar share. Whereas in agreement of Dropbox, as we can see that the buyers alter in a way that anyone can become one as the anniversary is offered chargeless of allegation for users who do not ambition to abundance too abundant data.
Identifying buyers is one of the key accomplish of befalling assessment. In adjustment to see whether if a artefact or anniversary will accept sales depends on its buyers and if they abide or not, if a artefact or anniversary is launched and there is not a absolute allegation for it again that artefact will not accept sales. Therefore, to conduct an befalling appraisal the buyers charge be articular in adjustment to see the abeyant of a artefact or anniversary in a bound bazaar amplitude as able-bodied as to see if it is anniversary abutting a assertive client or not in agreement of the acknowledgment business to balance the costs for business to that buyer. Question 2 ) In my opinion, Dropbox was an acutely adorable befalling mainly because of the actuality that there was annihilation abroad like it on the bazaar in agreement of an online accumulator arrangement that catered to the needs of the individuals as able-bodied as baby to ample businesses. The aggressive mural for Dropbox seems to be actual aerial due to the actuality that afore they alike went into business there were already 80 or added websites that offered agnate casework as able-bodied as due to the actuality that antagonism on the internet is angry back bazaar amplitude is actual bound alone the aggregation with the best artefact can survive in the continued run.
The better threats to a startup such as Dropbox would be the industry giants who can calmly action the aforementioned casework as Dropbox for a abundant lower amount due their ability in the industry and bazaar share; their costs are abundant lower as able-bodied because they accept been in the industry for so continued the assets accessible to them are absolute and these giants accept entered the bazaar as Microsoft’s SkyDrive and the Apple iCloud. “But recently, Dropbox has garnered all the press. Why?
Because Steve Jobs basic to acquirement it for Apple, but Drew Houston, Dropbox's CEO, said, "No, thanks. " Why didn't Dropbox advertise out to Apple for a acceptable nine-figure sum? Drew Houston anticipation he could body a bigger company. Jobs disagreed. He allegedly said Dropbox was "a feature, not a product. " (Joshua Gans, 2011) As we can see that alike Steve jobs believed in the abeyant of Dropbox and although it wasn’t awash this showed the apple that Dropbox was now a apparent cast on its own and didn’t allegation the admonition of their competition.
Question 3 The Dropbox business archetypal was fabricated to be as simplistic as accessible in adjustment to ambition an acutely ample bazaar so in essence, Dropbox has basically implemented a “freemium” business model, alms its product/service to users for chargeless (like 2 gigs of billow storage), but charging a fee for admission to the exceptional appearance (more storage).
Resource requirements for Dropbox were dealt with in several altered ways, the aboriginal of which was done by adopting basic through ‘Y Combinator’ a close that invests in start-ups and provides companies with the all-important industry networking accoutrement and business advice. Initially they were accustomed $20000 as able-bodied as an appointment amplitude to added advance their artefact and at the end of the 3 ages action Y Combinator and Dropbox managed to accession aloof over $1. 2 million.
Although the artefact was auspiciously launched for both consumers and businesses the simple book syncing anniversary has grown, in aloof a few years, to 50 actor alive users about 96% of the users do not pay annihilation to use Dropbox. The actual 4% pay for added accumulator and purportedly accomplish it profitable. This wasn’t acceptable for Dropbox so their approved to allure barter through paid announcement which amount them an accretion of $300 per advantageous chump which was way too aerial back a exceptional anniversary had an anniversary fee of alone $99 authoritative it acutely costly.
However they overcame that by an added $6 actor in costs from Sequoia Basic and Accel Partners. References 1. LAUREN BARLEY, MICHAEL PAO, THOMAS R. EISENMANN "Dropbox: It Aloof Works" Harvard Business School Case 9-811-065, January 2012. 2. 2, Joshua Gans | 11:37 AM November, and 2011. "Where Is Dropbox's Power? - Joshua Gans - Harvard Business Review. "HBR Blog Network - Harvard Business Review. N. p. , n. d. Web. 11 Mar. 2013. <http://blogs. hbr. org/cs/2011/11/where_is
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