Dropbox case

Topics: Better, Names of large numbers, Viral marketing Pages: 2 (777 words) Published: October 13, 2014

Houston is still confident with Dropbox, which is a late mover compare to other competitors because of these following reasons. First, he thinks he can make money because customers will understand either storage is a physical one or online service, they both still cost money. Second, he sees opportunity of growing market of cloud service. Furthermore, he also thinks other competitors have difficulties in transferring data across firewalls and balked with big flies or a large number of files. Thus, he was confident to create something better than other competitors. The key element of Dropbox’s is that the storage service is based on a simplistic model. This storage service is really convenient because users can access to their file over Internet instead of using hard drive or any other complicated systems. Houston knows what consumer’s problem is, that’s why Dropbox became the leader of the market.

Dropbox is profitable in June 2010, because Dropbox service grows 200,000 users after ten days launching, and there are one million users by June 2009. The major reason why user number increases is word-of-mouth referrals and viral marketing, but not paid marketing. Word-of-mouth referrals and viral marketing creates the best result because it makes Dropbox increase 2.8 million users by four million users referring. Dropbox is an established company; I assume the company will become more profitable as it is ranked number 6th in the top 25 online backup company. Houston also knows how to maintain the innovations capabilities. He knows what customers want and what he should improve for Dropbox. One of the ways he improved product features was that the company launched “Votebox on the site to let the users vote and write what the think about features. This is a good way to improve the service. The company also uses A/B testing to determine if the modification yielded a significant improvement in conversion rates.

3. The key elements of Dropbox...
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