Case Digest - Dropbox: "It Just Works"

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Case Digest HW8 – Dropbox: "It just works"
Information Technology for Management (MGMTMBA 207)

Questions1: Dropbox is a late mover in a crowded space. What opportunity did Houston see? Specifically, what are the key elements of Dropbox’s current business model?

The Niche
Even though Dropbox was kind of a late mover, it found its niche and therefore increased its market share. At the initial stage, Houston found the on-line storage suppliers were unable to provide fast and fluent synchronization services. He therefore had the team to develop prototype, which allowed instantly synchronization for files of any type or size. They later further clarified their focus on ease-of use and reliability.

Overcome Entry Barrier & Key Elements of Dropbox’s business model Nowadays What’s more important is the strategy to build up single version. The strategy helped them save enormous expenditure to acquire company’s IT permission, which could be seen as a great entry barrier for many startups that had limited budget. They planed to let the users who are amazed by Dropbox bring the product into their offices. Meanwhile they promoted through referral program with two-sided incentive structure, building up their customer base. Dropbox nowadays still stick to its policy to have single version product, not following its rival to offer customized version for small businesses. They attract users through referral program, retain them, and earn money from those become willing to pay for extra storage capacity. The key element is its spirit of “ease of use” which is user-friendly and has drawn users through word-of-mouth marketing. Based on its past experience, this method is more effective than other kinds of advertisement. In addition, one of their niches is that users can share files and works across multiple PC platforms. They also utilize the demand of people to share files with friends to spread the product information.

Question2: Imagine that at the same time...
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