Team no: 13 Writeup Mustahid ali and Sachin Singh
DROPBOX: “It Just Works”
CASE SYNOPSIS: Dropbox, founded in April 2007 by Drew Houston and Arash Ferdowsi, officially launched in September 2008. Drew Houston, is he co-founder and CEO of dropbox, a downloadable application that allowed users to easily share, sync, and store files (photos, documents, videos,ets) across most personal computers and smart phones. The company headquarter is in San Francisco, California. Dropbox is a venture-backed Silicon Valley start up, founded in 2006, that provides online storage and backup services to millions of customers using a "freemium" (free + premium offers) business model. The case recounts ...view middle of the document...
Later on they launched BETA version for limited group of users who registered through a simple landing page. They used guerrilla marketing, online marketing, viral marketing.
They were more focused on developing part and always try to give the user friendly and secure service, thus they analytics, they trying to do the product segmentation on normal and business basis and try to accelerate the growth. Houston wondered if dropbox should continues its strategy of offering a single products for all users or whether it should segment its diverse and growing user base, perhaps by creating a “professional” version that targeted the “power” user or a separate product for small/medium- sized business. Houston looked forward to discussing these option with his team.
PROBLEM DEFINATION/SUB PROBLEMS: The main problem was in applying the effective strategy as they were new in the field and their competitors already were doing very well. So to sustain in the market they need the continuous growth in feature’s in the product. Second problem was Funding, they initially got only 2 to 10% of what they needed by somehow later on they manage to survive, but it was hard.
Beta version testing problem: After developing a Mac client, in March 2008 Houston posts video on Digg to generate interest, and beta testers jumps from 5,000 to 75,000 virtually overnite.
Hiring problem: getting the good employee is not a easy task, getting a wrong one might kill your business, Dropbox hires 6 MIT computer science majors, but not much luck with product or business manager hires.
Analytics and developers problem: An Analytics Engineer was hired to improve analytics and optimize customer acquisition efforts.
Marketing and promotion problems: Expensive marketing efforts, such as AdWords, and cost per click, it costs $300 to acquire a paying customer, that was very expensive for the company.
Problem in partnership: Partnering with a PC security software is discussed and an SVP disappoints Houston when he wants to bury the brand. They decide they need a VP of business development soon. Overall it was a simple idea but very challenging to build certainly enough to keep busy for the next five years.
SITUATIONAL ANALYSIS : Most of the time situational analysis is given by the SWOT or PEST analysis but here I am giving you the combine analysis. The first generation of cloud storage services was based...