Dropbox: “It Just Works Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Dropbox: “It Just Works Case Solution

Hypothesis confirmed and discarded in 2010

Houston was very clear regarding the characteristic of the product. Due to which the business model of Dropbox was based on few key elements that remain the center of the product throughout even though initially some of them were deemed as hypothetical.

However certain adjustments were made to the initial business model implemented by the company. One of the changes that took place was from the distribution perspective, the method that was previously though was changed to confine the financial budgets on AdWords and other distribution network. After the company discarded the distribution methodology that was previously adopted, Dropbox became dependent on Client to client distribution.

Furthermore, the company has kept the initial qualities maintained with the necessary adjustment as per the market demand. The company updated the price and the GB s that were being offered to its customer, instead of 1GB the company provided the users with 2 GB free storage and added different bundles of additional storage at competitive rates.

Evaluation of the approach to test hypotheses

The company apart from other prominent features added minimum viable product, a new version design to collect in-depth information about the customers. It was considered as the prototype of the product that helps in evaluating the customers and efficiency of the beta test version before the product was introduced in the market.

The product introduced was available to a confined number of individuals that were enlist with a specific goal to test the 2 GB version of the product. In order to select the user for testing the hypothesis, Houston along with his group made a three minute video explaining their services which was then posted on a well know site of designers. This was done to evaluate the demand of the product in the market.

Even after the launch of the product different tools were used to further evaluated and identify the flaws in the product. Addition to this a system was adopted to save the folders having passwords and the once being shared with other users. The company also added various languages to increase its reach and adaptability. Quite a few changes have been made in the product over time to improve its performance and effectiveness. However the core element of the Dropbox are same as they were before i.e. easy to use, quick and safe. Therefore, it can be concluded that Dropbox didn’t waste his time and resources or made any notable mistakes while developing the product. The hypotheses that were incorporate were efficient to identify any loopholes of the product.

Google approach to pursuing G-Drive

The approach of Google to pursue G-drive differed from the approach being used by Dropbox in many ways.

Compared to Dropbox, Google is a well-established company having a facility to modify their products as per the customer demands and needs whereas Dropbox is a newly established company and will require subsequent years to target the diversified segments.
Google has its reach throughout the world, the targeted base of Google would have been much larger, having significantly hire potentials compared to Dropbox.
Google had an advantage over Dropbox as it was an established brand and is well-renown in the market, while Dropbox will take years to strengthen its position as a strong brand in the market.
Google could have utilized their own storage systems with regards to AS3, used by Dropbox. Eliminating the need to rely on 3^rd party for storage systems.
The IT infrastructure of Google is very well structured and is known for its excellence, they can easily offer a much simpler product with regular features than that of Dropbox.

Separate version for small and medium sized firms

Dropbox should introduce a separate version targeting small and medium sized firms. As the company is focused on using organic customers and viral marketing aligned free mium strategy to expand its product reach and to increase its customer the base, along with the incorporation of Trojan horse strategy to attract the business users. Therefore, it is advisable to develop a separate version for the business users to further simplify the process and to stay competitive in the market. The process that he can incorporate to finalize the decision are as follows:

Customize or transform the products according to the needs of its customers.
A diversification strategy can on the basis of product can be utilized.
Conduct surveys to generate proper feedback from its customers.
Incorporation of Copyright measures will help prevent the replication of his model.
Evaluation of the competitor’s product and services will provide him with a better view about the services that need to be offered.

Recommendation

It is recommended that Dropbox should segment its diverse and increasing user base as per the usage rate.
In order to maintain the ease of use the company should avoid the feature of syncing files outside the Dropbox folder as it will make the process complex and because of it the company will be deviating from its claim of easy to use.
The idea to collaborate with large organizations should be implemented as it will help the company to grow and expand its reach and increase its credibility in the market.
The partnership with the manufacturers of smartphones and tablets by Dropbox will benefit the company by capturing the fastest growing market of smartphones and tablets.
As the competition is growing intense and the rivals are performing quite well in the market. Dropbox should reconsider their pricing and the model currently being used by them to approach the customer and should restructure it by adding more flexible and advance feature to retain the existing customers and to attract the users of other storage device

Appendix

Exhibit 1

Key elements of Dropbox's business model

key components were the accessibility and simplicity of the products and service
Another key component was the high quality of services that Dropbox gave
The product worked consequently and managed complex operation
Concerning target clients and its technique of client procurement

key component was the arrival of a single form for all clients

Exhibit 2

Financial projections

Total Users	10,000,000
Number Of Users	2%	4%	9%	15%
# Of Payers	200,000	400,000	900,000	1,500,000
# Of Free Users	9,800,000	9,600,000	9,100,000	8,500,000
Total Assumed Revenue	$ 10	$ 11	$ 14	$ 16
Total Assumed Cost	$ 7	$ 7	$ 7	$ 8
Total Profit	$ 4	$ 5	$ 7	$ 9
% Increased From 2%		31%	43%	29%