HW Week 7-Ind: Case: Dropbox
Name: Aarjav Dutt
This case is part of the course pack on HBSP, see a link in syllabus. Write detailed answers, starting with a brief summary what this case is about. 2 pages max.
The case of Dropbox tells the story of Drew Houston and how he had the inception of the concept of Dropbox. The case explains and tells us how the product was developed, how it was tested and what led to the growth of the whole company from this product. We also get to see how Dropbox has sustained in today’s competitive market and what it’s rivals are doing to get ahead in the race.
Dropbox Case Assignment Questions:
1. Should Dropbox launch a version targeted to SMBs? Justify your answer.
A. After looking at the results and the rankings presented in Exhibit 7 of the case study, I can say that, Yes Dropbox should launch a version for SMBs.Dropbox did not rank in backupreview.com’s list of storage companies SMB segment. But according to the excerpt from Y combinator application, Dropbox has started earning money from small/medium businesses through subsets of Dropbox. I think once Dropbox launches its own version of application for SMB’s, it will be profitable for the company. Even though Carbonite having an SMB version, incurred losses because of heavy spending in marketing using its own servers to store user files, unlike Dropbox which used Amazon S3 for storage.
2. Dropbox is a late mover in a crowded space. What opportunity did Houston see? Be specific.
A. Before Houston had the idea of Dropbox, there were several competitors like Mozy, who provided online storage. But, Houston saw an opportunity among the arising competitors, that none of these rival services provided an option to transfer data across firewalls and balked with big files or large number of files. Earlier file storage systems worked on a simplistic model, where users stored all there files on the internet instead of there hard drive. But this approach led to several issues for users. Houston suggested that they instead store files locally and update the cloud copy using time and bandwidth saving optimizations.
3. Estimate current (2010) profitability for Dropbox (evaluate fixed and variable costs & revenue per year). List your assumptions and calculations.
4. When he applied to Y Combinator (see case Exhibit 3), what hypotheses did Houston hold about key elements of Dropbox’s strategy? Be specific. As of June 2010, which if them turned out to be wrong? Be specific.
5. Three things you learned from this case?