Dropbox case Essay

Custom Student Mr. Teacher ENG 1001-04 12 May 2016

Dropbox case

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.

The key elements of Dropbox that Houston held are subversion, trac, and rsync, and making them just work for the average individual or team. There are some issues that Dropbox still needs to solve. The company should have to create more features to compete with competitors, so they can sustain in the market. Although Dropbox have good MIT computer science major workers, they do not have good luck with business or product hires. They also spent too much money to for marking such as cost per click, or AdWords. He did not waste time/resources, because Houston already tried my ways to keep the company growing, he tried to do what he needs for the company. The better way he should do for the company is solving the problems of the company. In my opinion, the better way to test key hypothesis is that the company should offer more unique, useful, and convenient for those big corporations with high security. Or they can do the survey for those big companies to know what they want, so Dropbox can innovate better features.

Google’s approach to pursing “G-Drive” have differed from the approach that Dropbox’s team followed. Unlike Google, Dropbox did not have much better funding. They needed to raise working capital to accelerate growth but they prioritizing in their features and finding right market. Sometimes if you do not have something, you can find alternative with more efficient way. Google has better fund and they did not see themselves with struggle with money, in other word their mind was more spoiled.

In the beginning, Houston’s purpose to create Dropbox was just to solve his own problem, as well as other people’. It will be convenient if you can open your files or documents on any devices as long as there is Internet. Since there are a lot of competitors in the market, which offer the same service, he needs to have some other different ideas that others don’t have, in order to keep the company busy in the following years. Especially to compete with Carbonite and Mozy, Dropbox should adjust their price and their freemium business model. The company should provide more service of demand of customers want. Google Drive now gives more storage than Dropbox with the same price and searching files on Google docs is easier. Dropbox also should give an option for those who want to sync outside folders to Dropbox. They think it would be more flexible but also more difficult to use for users, but some other users might not think so. Another thing they should do is asking users for feedback so that they will know if the service is useful or not, and what should be improved.

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  • University/College: University of Chicago

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 12 May 2016

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