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Strategy - Dropbox

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Strategy - Dropbox

  1. 1. Dropbox
  2. 2. In a highly commoditized market against the tech giants, how will Dropbox find a competitive advantage in order to survive?
  3. 3. Reduced Margins More Competitors Less Differentiation In a highly commoditized market against the tech giants, how will Dropbox find a competitive advantage in order to survive?
  4. 4. Dropbox offers: Cloud storage, file synchronization, and client software. 3.3Bi Sharing connections 1.2Bi Files saved Every day 500mi Users 150k Business users
  5. 5. So Far So Good… 25 50 100 175 200 300 400 100% 100% 75% 14% 50% 33% 0% 30% 60% 90% 120% 0 100 200 300 400 Apr'11 Jul'12 Nov'12 Jul'13 Sep'13 May'14 Jun'15 Registered Users (LHS) Y-o-Y Growth Rate (RHS)
  6. 6. 27% 27% 23% 21% 3% Dropbox icloud OneDrive GoogleDrive BOX Amazon Market
  7. 7. Strengths • First Mover Advantage (largest user base) • High Switching Cost • Network Effect with largest user base • Ease to store, share and access data • Synchronization and backup service • Web uploading and publishing service Weaknesses • Limited free storage • Security Issue • Low integrated Internet service compared with Google, MS, Apple and Amazon. • Lack of own servers. Opportunities • Business Partnership • R&D capability to develop new features • Focusing on the corporate clients all around the world • M&A with Social Media Networks • Emerging market with various language Service Threats • Highly Competitive Market (Red Ocean) • Getting lost interest from users • The Same Strategy with competitors • Diminishing new users • Security Issue SWOT Analysis
  8. 8. 2007 2016 The beginning of the end of the physical storage Cloud storage becomes a commodity Software indifference – great interoperability
  9. 9. Valuable? Rare? Costly to Imitate? Organized to Capture Value? Competitive Advantage? Parity Software indifference – great interoperability 2007 2016
  10. 10. 5GB Free $1.99 $9.99 10GB Free $10 15GB Free $1.99 $9.99 up to 16GB Free $XXX $9.99 15GB Free $1.99 $6.99 100GB 1TB Monthly payments 100GB 1TB
  11. 11. Valuable? • Product differentiation? • Customer Value? Rare? • Competitors? Costly to Imitate? • Can be buy? • Has substitutes? Organized to Capture Value? • Organization Its Prepared? User Acquisition? • How will the company bring customers? • How to generate engagement? Business Model? • Direct Sales? B2B? • Revenue Shared? Subscription? Supply Chain? • Defined Scope? Customizable? Standard? Organization Ready? • It's the company ready to deliver the product or service? Sustained Competitive Advantage Long Term Strategy Strategic Valuable Resources Strategy & Operations Suppliers Partners Barriers to Entry Competitors Technology
  12. 12. Strategic Agility & Dynamic Capability Dropbox from Inside Dynamic Capability Startup spirit and structure More flexible Focused on single product Strategic Agility Slow product Development process Privacy Issues Sensitive Users
  13. 13. MachineHuman Few big competitors Many small competitors Swarm Bots Era Giant Tyrants Era Minions Era Savvy Landlords Era Dataowner Decision owner
  14. 14. 1. FILE SEARCH 2. BOX ACQUISITION 3. IOT CENTER RECOMMENDATIONS
  15. 15. Free extra space When you share your files 1. FILE SEARCH
  16. 16. 2. BOX ACQUISITION Defensive Strategy Add Business Users Additional Revenue Stream
  17. 17. 2016 2020 Multi Platform IOT devices Dropbox as the center of the IOT data. 3. IOT CENTER
  18. 18. Voice Interaction 3D Screen Data visualization Any data Anywhere
  19. 19. Short time offensive Stop the bleedingShort time defensive Long term offensive  Start the recovery  Conquer the Future of the Cloud
  20. 20. Dropbox ALL your data, ONE place

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