Dropbox "It Simply Works" Circumstance

 Dropbox «It Just Works» Case Research Paper

1 ) When Harrisburg applied to Sumado a Combinator, what hypotheses did he keep about the key elements of Dropbox's business model?

The first key elements were the simplicity and convenience of the item. To underline this element he asked every VC who evaluated him if they were employing any other merchandise of that kind, considering that, simply by that time, there have been some other solutions in the market currently. The product worked automatically and dealt with intricate operations in a simple way.

Another key factor was the top quality of services that DB provided. Quality was described by Houston in terms of safety of the paperwork and information and quickness of the process. He had also built the program to operate which includes innovative scientific concepts that updated only the changes and kept the main file placed locally.

Regarding the focus on customers and its particular strategy of customer buy, he made the observation during the time, that potential users had been technically successful, (e. g. college students downloading it music P2P) but that due to the ease of the merchandise and development of the net it could rapidly grow. Another key element was your release of your single type for all users, targeted specifically at people. This allowed the company to expand with a " Trojan viruses horse” technique of focusing on users to then enter into the BUSINESS-ON-BUSINESS market automatically. This strategy may also have been supported by AdWords and partnerships with big syndication channels (to sell the product already installed)

From the revenue generation element, the company depended on a Freemium model through which, for example , 1 GB was given at no cost and the additional 10GB intended for 5$ month (team ideas from 20$ month)

By June 2012, which of those

hypotheses have been confirmed, and which have been discarded?

Drew Harrisburg had a quite clear and defined idea of the last product if he asked for the first Venture Capital, therefore the business model of Dropbox relied on certain key elements that are nonetheless at the center of what the method today. Even if the initial aspects of a business program are considered hypothetical, in this case many of them turned out to be quite correct.

Even so there were certain adaptations and corrections for the original organization idea. One was through the distribution viewpoint, were technique was modified to limit the budget invested in AdWords and other traditional marketing tools. DIE BAHN then made a decision to rely on a customer-to-customer distribution. Partnerships with the large distribution channels was initially abandoned but recently the corporation has started signing agreements of this type (HTC distributes Dropbox on Android os phones).

The freemium model has mostly kept most of its attributes but the prices and GIGABITE offered had been adapted to the market requests. (2GB free, extra 500MB for recommendations, teams packages of 1TB for 795$/year, pack-rat... )

2 . Is it possible to recognize any MVP they have used to confirm their presumptions?

A  MVP, " minimum viable product is that version of the new product which allows a group to collect the most amount of validated learning about customers together with the least effort. ”[1] It could be seen as a product-prototype, which is examined by experienced clients to be able to improve the test version prior to going to market. Accomplishing this, features without value to the customer can be removed and missing features could be added. A MVP enhances the chance of the final product to hit your objectives in the market.

The Dropbox-prototype was only accessible for a limited number of users, who had to register in order to test the 2GB type. To get test users, Houston and his team came up with a three-minute video explaining all their service, which was posted ahead of time on a renowned website pertaining to developers (Hacker News). This process, Houston wanted to check the demand for the product, ensure that the Dropbox-IT-system worked and in addition get opinions and learn in the users.

To be able to...



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