This document provides an analysis of the Dropbox company. It discusses how Dropbox was founded in 2007 by Drew Houston to address issues with file sharing services at the time. Through innovation and strategic choices, Dropbox grew rapidly and became the leader in cloud storage and file synchronization, reaching a $10 billion valuation. The document analyzes Dropbox's business model, financing stages from seed to expansion, competitive advantages, and strategies for competing in today's market against major rivals like Google and Microsoft.
Here's the deck we used for our Series-A round. We raised $26M led by Benchmark, 2 months after our Seed round with Accel.
Even though we didn't necessarily show the appendix slides, we sent them along with the rest of the deck.
See https://airbyte.io
This session will provide a basic overview of Microsoft 365 and will then dive into how to position its benefits for customers. You'll learn how the Microsoft 365 features help resolve many common business challenges today and how you should be speaking with customers about these.
Here's the deck we used for our Series-A round. We raised $26M led by Benchmark, 2 months after our Seed round with Accel.
Even though we didn't necessarily show the appendix slides, we sent them along with the rest of the deck.
See https://airbyte.io
This session will provide a basic overview of Microsoft 365 and will then dive into how to position its benefits for customers. You'll learn how the Microsoft 365 features help resolve many common business challenges today and how you should be speaking with customers about these.
Tracxn - Top Business Models Report - Real Estate and Construction Tech - Sep...Tracxn
Tracxn's proprietary #taxonomy brings to you top #BusinessModels in Real Estate and Construction Tech rebrand.ly/dnvw64r
Get our free reports on #PracticeArea or #sector of your interest to your mailbox regularly https://rb.gy/cx2upn
Totem Sustainability wants to make sustainability easy and affordable for all organisations. Starting with a focus on energy, water and waste data we will help organisations manage their legal and voluntary sustainability requirements and integrate their reporting, saving time, money, and the planet. The data will then be shared to increase the learning opportunities for our customers and for governments, universities and other interested parties. That’s Sustainability for Everyone.
This presentation is on Johnson Johnson company for marketing students of BBA 4th semester. Presentation is on Promotional tools used by Johnson Johnson.
Inside view of Amazon brand analysis, this can help us understand why they are becoming a clear leader in Indian market.
This was presented in IIFT college by Ritesh Tando.
Snapdeal, Flipkart comparison is there. created by consultant with two years of indepth knowledge of the market.
Here's the deck we used for our Seed round. We raised $5M led by Accel.
Even though we didn't necessarily show the appendix slides, we sent them along with the rest of the deck.
See https://airbyte.io
Based on the consumer segment of Johnson & Johnson, we analysed the current situation of the company and came up with strategic recommendations on how it can enhance its position in the market.
The second annual Adobe Consumer Content Survey—a December 2018 survey of 1,000 U.S. consumers who own at least one digital device—found that digital content consumption is on the rise and consumers have already established expectations and preferences.
Lead the journey to the cloud and drive innovation! Discover what makes the cloud so compelling to enterprises; with which applications you should start your cloud journey; how your organization will change, and how skill sets will evolve; how to measure progress; how to think about security, compliance, and business buy-in; and how to exploit the ever-growing feature set that the cloud offers to gain strategic and competitive advantage.
DROP BOX: “ IT JUST WORKS ” Case Analysis
Dropbox is a venture-backed Silicon Valley startup, founded in April 2007 by Drew Houston and Arash Ferdowsi, officially launched in September 2008. Should it change its strategy or not ?
Tracxn - Top Business Models Report - Real Estate and Construction Tech - Sep...Tracxn
Tracxn's proprietary #taxonomy brings to you top #BusinessModels in Real Estate and Construction Tech rebrand.ly/dnvw64r
Get our free reports on #PracticeArea or #sector of your interest to your mailbox regularly https://rb.gy/cx2upn
Totem Sustainability wants to make sustainability easy and affordable for all organisations. Starting with a focus on energy, water and waste data we will help organisations manage their legal and voluntary sustainability requirements and integrate their reporting, saving time, money, and the planet. The data will then be shared to increase the learning opportunities for our customers and for governments, universities and other interested parties. That’s Sustainability for Everyone.
This presentation is on Johnson Johnson company for marketing students of BBA 4th semester. Presentation is on Promotional tools used by Johnson Johnson.
Inside view of Amazon brand analysis, this can help us understand why they are becoming a clear leader in Indian market.
This was presented in IIFT college by Ritesh Tando.
Snapdeal, Flipkart comparison is there. created by consultant with two years of indepth knowledge of the market.
Here's the deck we used for our Seed round. We raised $5M led by Accel.
Even though we didn't necessarily show the appendix slides, we sent them along with the rest of the deck.
See https://airbyte.io
Based on the consumer segment of Johnson & Johnson, we analysed the current situation of the company and came up with strategic recommendations on how it can enhance its position in the market.
The second annual Adobe Consumer Content Survey—a December 2018 survey of 1,000 U.S. consumers who own at least one digital device—found that digital content consumption is on the rise and consumers have already established expectations and preferences.
Lead the journey to the cloud and drive innovation! Discover what makes the cloud so compelling to enterprises; with which applications you should start your cloud journey; how your organization will change, and how skill sets will evolve; how to measure progress; how to think about security, compliance, and business buy-in; and how to exploit the ever-growing feature set that the cloud offers to gain strategic and competitive advantage.
DROP BOX: “ IT JUST WORKS ” Case Analysis
Dropbox is a venture-backed Silicon Valley startup, founded in April 2007 by Drew Houston and Arash Ferdowsi, officially launched in September 2008. Should it change its strategy or not ?
24
TECHNOLOGYREVIEW.COM
MIT TECHNOLOGY REVIEW
VOL . 120 | NO. 2
S
A
M
D
’O
R
A
Z
IO
Upfront
Eyeing a Dropbox IPO
Can the tech unicorn cash in on corporate users?
Of the big IPOs expected to occur this year,
Dropbox’s could be one of the most intrigu-
ing. When Dropbox last raised money, in
2014, it was valued at a hefty $10 billion.
But large investors such as Fidelity and T.
Rowe Price slashed the value of the Drop-
box shares on their books by as much as 50
percent in 2015. The key concern: could
a company whose free file storage service
is used by hundreds of millions of people
find enough paying customers to make a
great business?
Investors may be in for a pleasant sur-
prise. According to the company, sales
are now running at more than $1 billion
a year, up from around $400 million in
2014. That’s thanks in part to growing
sales of Dropbox Business, a souped-up
version of the free app that costs $150
per employee per year. The company has
been cash-flow positive since early 2016,
even as it has made heavy investments in
engineering, sales, and IT infrastructure.
Now CEO and cofounder Dre w
Houston is leading a new strategic charge.
In addition to selling utilities to keep dig-
ital files safe and accessible, Dropbox
intends to offer software that businesspeo-
ple use for hours each day to create con-
tent and get work done. “This is a mature,
very, very powerful software company,”
says Bryan Schreier, a partner with ven-
ture capital firm Sequoia Capital, which
was an early investor in the company.
That doesn’t mean Dropbox will live
up to that heady $10 billion valuation,
which even at the time was widely seen
as a sign of a bubble about to burst. Even
at an annualized revenue of $1 billion,
investors would need to think the com-
pany is worth 10 times its current sales
on the day it goes public. These days, the
average cloud software company trades
at just 4.7 times revenue, according to
Bessemer Venture Partners.
Still, Schreier and other investors
insist they are no longer worried about
MA17_upfront.indd 24 2/6/17 3:58 PM
25
TECHNOLOGYREVIEW.COM
MIT TECHNOLOGY REVIEW
VOL . 120 | NO. 2
Dropbox’s fundamental business model.
About 10 million new people start using
the free consumer product every month.
An increasing percentage of those users
sign up for the $100-a-year Pro version,
which offers more storage and sharing
features. Many of those Pro customers
use Dropbox at work, and once their
employers realize how popular it is, they
are more likely to step up to Dropbox
Business, which is designed for use by
teams rather than individuals. So far
more than 200,000 companies have
signed up for Dropbox Business, up from
50,000 in 2014. While most are small and
medium-sized companies, a few big com-
panies such as Expedia and News Corp.
have more than 10,000 seats.
A successful push into productivity
and collaboration software could give
corporate customers.
IS CROWDFUNDING DOOMED IN SWEDEN? WHEN INSTITUTIONAL LOGICS AND AFFORDANCES C...Robin Teigland
Crowdfunding has been embraced by entrepreneurs across the globe as an alternative, and well-publicized, source of start-up financing. In Sweden, despite the apparent benefits of crowdfunding, high levels of internet
connectivity and a reputation for producing global ICT entrepreneurs, crowdfunding has not (yet) been embraced among ICT entrepreneurs. This paper explores this empirical puzzle in light of technology affordances and
institutional entrepreneurship literatures, as well as their complementarity. After presenting the methodology and preliminary findings of this qualitative case study of the crowdfunding phenomenon in Sweden, it concludes with a few salient findings of this ongoing project. These findings suggest that both the design of the platform and existing institutional logics among entrepreneurs shape perceptions of affordances and thus the adoption of this new form of start-up financing.
GfWM Position Paper Knowledge Management and Enterprise 2.0gfwm
This document is a translation of the German version of the position paper available at http://www.slideshare.net/gfwm/gfwm-positionspapier-wissensmanagement-und-enterprise-20. It describes the position of Germany-based GfWM Knowledge Management Society.
Fortune Softtech Boston is a success Web Development Company that gives Application Development, Drupal, Wordpress and Joomla CMS development and web design.
Online networks & the traditional university a prospectusDavid C Roberts
The subject of this report is the development of online learning and how it might affect the university sector. The aim is to consider the potential and threat represented by this technology. To achieve this it is necessary to consider the strengths of the new online learning approaches, their likely development and plausible market reactions. It is a deliberate scenario-setting, written in order to facilitate strategic analysis and responses. The only judgments made are that, first, this is an important topic and that, second, this is in part because teachers have a responsibility to use technology well. No other position of judgment is taken as to what will happen in the coming years but instead four scenarios are described, each conveying a different level of impact upon UK higher education.
Discussion Dynamics of Cooperation and CompetitionBeing successfuLyndonPelletier761
Discussion: Dynamics of Cooperation and Competition
Being successful in today’s business environment requires more nuanced thinking than just stressing competition. Consider General Electric, which found that a highly effective way to improve its KPIs in the aircraft engine market was to actually partner with a competitor. It seems counter-intuitive, but it worked. When General Electric and Snecma created an alliance to build aircraft engines, General Electric shielded certain sections of the production process to protect against the excess transfer of technology (“Snecma, GE Renew CFM Agreement,” 2008).
Consider the dynamics of cooperation and competition in the future business environment. For organizations that are in an environment of increasing cooperation/competition, consider the proactive role the HR department can serve in helping the C-suite think about balancing competition and cooperation. As part of the Discussion, give specific examples.
To prepare for this Discussion,
Review this week’s Learning Resources, especially:
· Resource fit in inter‐firm– See pdf
· Interpretive schemes – See pdf
· Knowledge transfer to partners – See pdf
· Two Favors of Open Innovation - See pdf
Assignment:
Post a cohesive and scholarly response based on your readings and research this week that addresses the following:
Tommy McMillian request letters from you that can show the parole board that he has a support system waiting outside.
Conduct additional research to analyze the dynamics of cooperation and competition in future business environments.
· From your research, discuss specific ideas or concepts regarding what proactive role can the HR department serve in helping the C-suite think about balancing competition and cooperation?
· Does cooperation/competition require equal resources from all partners?
· How are the decisions made about the levels of resources committed by each partner?
· If there is a wide disparity in net worth or market share of the partners, is it reasonable to expect each to commit the same percentage of resources?
· How are conflicts around cooperation and competition anticipated, planned for, and resolved by the HR department?
· No Plagiarism
· APA citing
FROM THE EDITOR
James A. Euchner
TWO FLAVORS OF OPFNINN01MFI0N
Since Henry Chesbrough published Open Innovation
(2003), the paradigm he described has been a subject of
great interest and experimentation in corporations. Ches-
brough defined open innovation as breaking down the
boundaries of the corporation so that "valuable ideas can
come from inside or outside the company and can go to
market from inside or outside the company, as well." He
contrasted this open paradigm with the more-traditional
closed innovation paradigm based on the captive R&D
laboratory.
Chesbrough's work encouraged companies to create
porous innovation pipelines and to become more aggres-
sive about licensing, working with start-up companies,
spinning out concepts that don't fit wi ...
Blinkit (http://blinkit.co.il) is an Israeli social media and enterprise2.0 consulting and professional services firm. This presentation was presented in in march 2008 at the TheMarker COM.vention.
grantcloud presentation for MassChallenge 2010Lee Wright
This short presentation was given on July 16, 2010 by Lee Wright and Adam Duston as part of MassChallenge 2010 judging.
grantcloud was envisioned as a web-based tool that would bring together current information from thousands of sources, along with historical data and community insight to help organizations identify, track, manage, and secure grants that provide new sources of funding for their initiatives.
This project did not advance in MassChallenge and we chose not to pursue it.
Lee's current projects include The History List (www.TheHistoryList.com), a platform for publicizing history-related sites and organizations across the country, and eventicize (www.eventicize.com), a tool for leveraging your social network to raise awareness of your events.
My IPA Diploma thesis. This piece examines a new operating system for a modern communications agency, a system which fuses old hierarchical models so familiar to us with newer models and systems borrowed from software companies and technology startups.
I believe not in an answer which promotes one over the other, but one which adopts a mix of the two.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
1. Entrepreneurial Management
Dropbox company analysis
Alan Tuganov
Introduction
This paper begins from definingthe role of innovation in entrepreneurial success and introduction of Dropbox.The
company is the leader in the filehostingmarket providingcloud storageand filesynchronization services.This
section is followed by introduction of generally accepted structureof start-up expansion and analysisof financial
growth of the company. In final section the author focuses on strategic choices made by the company, industry
analysis,marketingefforts and overall effectiveness of existingbusiness model.
Role of innovation in success
In a rapidly developingbusinessworld innovationsareplayingthe main rolein achieving competitive advantage.
Innovation is a successful exploitation of new ideas that allowentrepreneurs to differentiate their companies from
the competitors (Norman Fahrer, 2012). Ability to produce radical and incremental innovationsand efficient
management are the key attributes of the successful entrepreneurship in any industry.
In the US modern business the main generators of innovation aretechnology start-ups.These companies are
inherently agile,adaptiveand areable to generate substantial amount of profits.Some of them, called gazelles
because of their rapid growth in accordancewith common startup classification system,may produce 20-30$
million revenue after 5 to 10 years of presence in the market (Robert D.Hisrich et all,2005). Often, those startups
are technology oriented. Thus, accordingto Investopedia’s radar,8 of 10 Hottest startup’s founded in 2015 deploy
advanced technologies, such as Internet, mobileapplicationsetc.
One of the startups,that generated innovation,which in its turn created valueto customers and achieved
tremendous growth by implementing effective strategy, is Dropbox Company. Today, after years of operations the
company provides access to onlinestorageservices to million users.Thestar of this company rosein 2007 and
sincethen the valueof the company has steadily risen and reached 10$ billion by January 2014,accordingto
BusinessInsider .
The idea of file sharing services emerged when Drew Houston, the founder of Dropbox, realized that he had an
incurable habit to forget to take his USB drive with him. As a person with IT background he started to search for a
solution that could help him transfer files from one device to another via internet. He suddenly found that all
applications that were available for a download had terrible performance without any reference to user-friendly
interface. The shortcomings of the fileshareservices led to a birth of a new fail-safeapplication concept that Drew
Houston implemented in partnership with Arash Firdowsi, his classmate from MIT.
Dropbox entered the US market with very intensivecompetition with the existence of similar products.His idea to
sharefiles was not new. However, accordingto Hana (Hana,U. 2013), Innovation does not necessarily originate
from new scientific discoveries,butmay arisefroma combination of already existingtechnologies and their
application in a new context (Eisenmann et all.2011 ).Similarly,the concept created by Houston and Firdowsi
engaged millionsof computers to download or upload files via existingencrypted internet connection.
2. Another importantfactor leading to success was Dropbox founder's ability to make the application of innovation a
systematic approach throughout the whole lifecycleof the venture. For instance,in the beginningof his venture
creation Houston was courageous enough to useinnovativeapproach to promote his product even though he
admitted itwas technically incomplete.One more technique, used by Houston to improve his product,was his
hand-on experience to make recruitingvideos for his collegefraternity.This knowledge helped him create a
screencastof a program demo and upload itto a popular forumfor developers, where he asked users to providea
feedback that might have been useful in the further development of the product features. In addition,by this
approach Houston gained the interest of a potential investor who was closely moni toringthis web site and was
impressed by the enthusiasmthe users demonstrated when referring to the product. All these efforts finally made
Houston’s’ plan work. As a result, he received 15000 US dollars fundingfromYCombinator seed fund and
immediately started workingon the finalization of his product.
The emergency of preinstalled versions of Dropbox on Android OS devices was another success factor produced by
the founder's innovativeapproach.The need of the mobileapplication allowed the company to raiseadditional
$250 million in 2011 .The importanceof this deal was tremendous. On one hand,this deal was promising to
Android phone manufacturers: the Android users could now enjoy build-in accessto reliablecloud services
provided by Dropbox. On the other hand, Dropbox services have also become availablefor Apple users.Bearingin
mind that Bluetooth synchronization of files between Android and Apple devices is still notpossible,Dropbox is
becoming an irreplaceabletool playingtherole of a bridge between the devices.
Accordingto Spinelli,start-upshavea high rate of failures atthe initial stageof the lifecycle.In software and
services segment of the technology industry,for instance,55.2 percent of firms usually closetheir doors in the first
two-five years of operations (Spinelli etal.2011).Meanwhile,the authors suggest that the survival rateincreases
as soon the venture reaches a critical mass employment level (10 to 20 people in a company staff) and $2 million
to $3 million in revenues.However, before achievingthis level of profitability,entrepreneurs need to overcome
scarcity of financethatthey faceon the early stageof product commercialization,which is also referred to as the
“valley of death”.
Dropbox fortunately avoided having difficulty of coveringthe negative cash flowin the early stage of the venture.
Obviously a status of Computer Science student in prestigious MITUniversity significantly boosted Houston’s
chances to raiseseed capital.Theuniversities,likeMIT,routinely transfer their technology through the formation
of new firms (Di Gregorio et al.2002). Venture capitalists areawareof this factand know the ability of skilled
researchers in eminent universities to startfirms to exploittheir own inventions.Therefore, they provideinitial
funds to “startupers’” from top universities likeMIT more willingly than to the entrepreneurs from less eminent
universities.
At the same time, a possession of a student card from MIT does not guarantee its owner the receipt of the
necessary financing.Entrepreneurs should be able to generate cost-efficientideas to attractinvestors’attention.
Dropbox founder was reasonableaboutcosts usinglean start-up method that is broadly discussed in Eric Ries’s
book: “The lean startup: how today's entrepreneurs use continuous innovation to create radically successful
businesses”. Ries's philosophy seeks to eliminatewasteful practices duringthe productdevelopment phaseso that
startups can have a better chanceto expand without requiringlargeamounts of outsidefunding, or ready-made
product. (Ries.2011) Ries believes that customer feedback duringproductdevelopment is a corecomponent of
lean startup process,and ensures that the producer does spend time on designingunnecessary features or
services thatare not required by consumers. As itwas mentioned in the previous partof this paper,Drew Houston,
who had a significantlack of initial capital, successfully applied this costeffective method. He produced a
minimum viableproduct and engaged users of Hacker News in the discussionson the uploaded demo video
instead of the product itself.Afterwards, the feedback received from them was used to tail or the product to the
customer needs.
3. Financing of the venture
Seed stage
By 2007, the year Dropbox was established,the options to obtain supportfrom incubators were limited.From the
various startup acceleratorsthatareavailabletoday there were only two major players in the market providing
seed capital to start-up builders.The firstone was Y Combinator, from which Dropbox obtained its firstfundingin
exchange for a small percentageof the venture’s common equity (usually theamount varies from 2% to 10% ) The
second option to consider for Dropbox was TechStars that nowadays still remains themain competitor of
YCombinator. When Houston decided to apply for a funding, YCombinator had a significantadvantageover
TechStars. The company was founded in 2005,and, by the time of Dropbox creation,simply had more time to
grow, and obtain bigger portfolio than Techstars which held its firstprogramin 2007.
Upon entering into YCombinator’s seed program, Dropbox benefited from mentoring, workspace,and
introductions to other advisers and investors over a three-month period. At this stage Houston and Firdowsi
worked on a cost-effective business model and once itwas completed, they received a 1.2 million USD convertible
debt from California–based Sequoia Capital.
Start-up stage
On a start-up level,Angel Investors or funds likeSequoia Capital provide financingto approximately 20%of equity
of a company in exchange of funding. Usingthis opportunity allows start-ups to identify the moment when the
venture may recruitworkforce and acquirethe assets needed for the business operations .Thus,once Dropbox
founders received the funding, they relocated to 900-square-footoffice in San Francisco and hired first6
employees from MIT’s computer scienceprogram to work on beta version of the program. Usually duringthis
period start-ups may experiment with market, pricingand sales tryingto cook their "secret sauce" (13), the
practicebrought in by the fellows.In September 2008,Dropbox launched the final releaseof their product .The
company offered their customers a freemium software which suggested that registered users could receive two
GB accounts with option to upgrade the spaceto 50 GB for $9.99 a month or $99 a year. Upon completion of
buildingthe final conceptof application,when itwas clear there was established revenue and customer base, the
company was ready for partnering with venture capital firms with bignames in the venture capital circuit. As a
result,Houston and Firdowsi applied for Series A financing,which is provided to the firms that already raised a
seed capital and ableto generate some revenue from its business model,although the generating net profits may
not be high. Typically,on this level venture, capitalists investthe needed amount (usually 3 to 5 millions) in
exchange of 20% of equity of a company .Houston, as a talented entrepreneur, managed to engage even more
funds. Using$6 million of Sequoia's the second loan to Dropbox, Houston expanded his company’s market
presence. Techcrunch reports that by 2011 the number of registered Dropbox users hit45 million.Onebillion files
were saved by Dropbox users every three days.
Despite this achievement, Dropbox still required additional funds to use for acquisitions,strategic partnerships and
the recruitment . Meanwhile, Dropbox founders were aware of the fact that industry giants likeMicrosoft,Google
and Apple kept their eyes open continuingto enhance competing products likeICloud or Google Docs. Itis also
worth mentioning that Dropbox’s main competitors, Box, raised a great round of $162 million financingin 2011 .
Therefore, Houston and his co-founder realized the importance of engaging more venture capital engagement.
Expansion/Mezzanine Stages
4. As already mentioned above, the main reason why bigventure capital firmsprovidemore funds on later stages of
start-up development is obvious.Thus,the risk of capital loss isdecreasingon each next step of start-up
development (see table1). From the table below it can be concluded that as soon as an operation gets less risky,
more investors come to play.
Stage at Which Investment is made Risk of Loss of Capital Causation of Major Risk by Stage of
Development
Seed stage 66.2% 72.0%
Start-up stage 53.0% 75.8%
Second stage 33.7% 53.0%
Third stage 20.1% 37.0%
Bridge/pre-public stage 20.9% 33.3%
Table 1 (David Shelters, 2012 )
Venture capitalists leavethe responsibility to cultivatenew ventures to seed funds.They areinterested in
established ventures likeDropbox with capability to produce ready-made products rather than promising
enterprises with high potential.In essence, the venture capitalistbuys a stakein an entrepreneur’s idea,nurtures
it for a shortperiod of time, and then exits with the help of an investment banker.
From April 2011 till 2014 January,Houston,effectively pursuingfundraisingchannels,could raiseSeries Band
Series C funding engaging enormous amounts of venture capital (250$Mand 350$Maccordingly) ,to capture the
market share. Accordingto Investopedia Round B and Round C capital isusually spentby companies to enhance a
winningproduct, supplement the team with talented professionals and acquisition of other companies that have
the competitive advantagethe venture may benefit from As it can be learned from different internet web-sites,
the capital raised by Dropbox duringthis period allowed them to acquire23 companies includingpromisingstart-
ups likeSnapjoy,or Readmill.The purposeof the purchasewas perhaps to diversify the company by new customer
segments and absorb new talents. Nevertheless, such approach can be considered as very controversial.On one
hand, the acquisitionshelped the venture to hitthe target of $200 million revenue in 2013 . On the other hand,
several of the acquired companies were shut down a few years later. In spite of the fact that Houston and Firdowsi
repeatedly stated that they were goingto enhance their main product by incorporatingsomeof features from
closingCarousel and Mailbox applicationsmany criticsargued thatMicrosoft,Apple and Google were simply better
in terms of creatingmore valuableproducts.Whatis more, Google pursued low-cost strategy in segment where
Dropbox had the greatest presence - onlinestoragesegment. Google dramatically cutprices on its GoogleDrive
offering 100 gigabytes for $23.88 versus the same size storagefor $99 offered by Dropbox. Dropbox reacted by
raisinganother $500 million worth of debt financingin April 2014.Itcan be assumed that the greatest part of this
tranche was purposed to increasethe number of Amazon and in-houseservers supposed to supportnew features
of Dropbox application.
Exit
Indeed, today the competition in onlinestorage segment is becomingmore and more severe. The rivals offer more
popular apps in the enterprise market, where Dropbox has plans to expand its business and its revenue base.
Dropbox led the $1.46 billion worldwidemarket for file-sharinglastyear with a 27% market share. However,
Microsoftand Box grew at faster rates than Dropbox putting in danger the company’s leadership in a long-term
perspective, accordingto researcher IDC . Many analyticssuggestthat, perhaps,for Dropbox now it is the best
time to exit as the company hitting10 times a $1 billion "unicorn" valuation and becomingan absoluteleader in
5. cloud storagemarket. Whenever it happens this year or later on, the divestment will be achieved through two
common avenues: a public offer (IPO) or a saleto a strategic investor (Klonowsky,2010). Although today it is hard
to predicthow Dropbox investors will decideto get a return on investment, one thing can be already concluded:
Dropbox will remain determinant of the growth of filestorage industry for the next several years.
Commercialization:
SWOT analysis
Strengths
More than 500 million activeusers
Easy installation and multi-languageinterface
Availableto work on different platforms
High awareness among internet users
User-friendly interface
Strong financials and trustof investors
Weaknesses
Smaller spacefor free version compared to Google drive
Customer data on cloud is limited
Switchingcosts arelow
Opportunities
People are in need of an easy way to transfer files
Rapid technological development
Well-established R&D
Increasingnumber of smartphone users
Threats
Fierce rivalry
Changes in consumer tastes require continuous improvement of the product
Availability of substituteproducts
Competitive advantage and strategy
As itwas mentioned earlier,Dropbox created sustainable competitiveadvantage outperforming competitors of
the industry over a long period of time. This advantageis determined by the quality of well-done, hardly to imitate
product that consumers wanted. The company’s mission talks abouthowthey envision thei r product to bring
about a change in people's lives. Duringalmosta decade their product has made people's lives easier by
6. simplifyingtheir daily filestorage.Houston and Co have continuously pursued differentiation strategy defined by
Porter(Porter,1980) by deliveringuniquefeatures and service.They were lucky to avoid cut-throat pricewars
creatingoutstandingvaluefor its customers. However, the situation has changed dramatically duringlasttwo-
three years. The competitors expanded their own services,puttingin danger the growth of Dropbox. For instance,
Google claimed to have 240 million user for Google Drive, and 250 million users for Microsoft’s OneDrive,as of
May 2014 . So how can Dropbox compete nowadays? The answer is simple:with price, valueand speed.
Adjustments to Current Price
It would be appropriateto suggest that Dropbox management starts to focus on combiningtwo different
competitive strategies at the same time—a cost-leadership strategy and a differentiation.
At the moment Dropbox user pays 10$ per month for additional 1 TBof space.This offer is pretty much
competitive to compare with the rivals (Box offers 100GB for same price, Google also offers 1TB for 10$) .The
problem with the paid plans is thatthe deal worth the money spent only if a user is near the edge of the provided
plan.Why pay $10 for 1 terabyte if all you haveis a 30 GB worth of content to store? Therefore, for Dropbox it
would be appropriateto reconsider the paid plans and add an option to purchaseless s toragefor less money. One
driveoffers 50 GB for 2$ a month. There is no need to losethe opportunity to expand by providing a similaroffer.
What is more, the free storageplan that is availableto the users upon registration looks out-of-date and should be
reviewed. Despite the opportunities like Getting Started tutorial,thatgives user 250 MB additional freespaceor
referral programthat allows user to earn 500MB for each friend, this can be hardly considered as a reasonable
offer today as competitors providemore gigabytes by default.
Creating Value
As itwas noted in SWOT, one of the strengths of Dropbox analysisisthattheir product is distinctfromGoogle,
Apple, and Microsoftapplicationsin its ability to provideoperating system interoperability.Their application
currently supports more operatingsystems than those created by competitors. Dropbox should realize,that sole
pricecompetition is no-win strategy, as itmay work only for group of users that only want a placeto store and
easily accesstheir files for cheapestprice – nothingmuch. In order to create value for the rest of consumers,those
who arelookingfor special features likephoto/video preview, onlinevideo editingetc., Dropbox should providea
largenumber of applications ableto operate in any of existingecosystems.This wi ll allowpremium pricing.
Improving performance
At the beginning of its expansion Dropbox encountered with problem to store petabytes of information on servers.
The purchaseof costly datacenters was againstDropbox philosophy to stay as leaner as possi ble.For these
purposes the decision was madeto engage third party servers to store users' files.The company established
strategic partnership with Amazon that agreed to store data on its bigultra-securedatacenters.However, recently
the newspapers have reported that Dropbox announced the launch of user-data migration to its own datacenters
driven by the improvement of performance and the need for customization.Itlooks likea reasonableapproach,as,
if the venture achieves the goals itset, itmay strengthen company reputation as a reliablestorageprovider and
reflect in higher revenues for the company.
Marketing efforts
Dropbox achieved its sales pursuingboth Market Penetration and Market Development strategies defined by
Ansoff in 1957. Accordingto Ansoff’s paper, Market Penetration happens when a company seeks to improve
business performanceeither by increasingthevolume of sales to its present customers or by findingnew
7. customers for present products.In contrastto Market Penetration, Market Development refers to the firms that
try to expand into new markets usingtheir existingofferings.(Ansoff. 1965)
At the dawn of Dropbox expansion,Houston believed that there was a huge demand for his productas users
weren't really satisfied with the existingones. He entered the market with a product similarto others, but better in
quality and strugglingfor market share. Houston used a different approach relyingon word-of-mouth promotions
and unique referral program instead of common advertisements. The Blue Ocean strategy applied by the Dropbox
founder allowed the company to avoid the pain of going head-to-head with rivals in the"Red Ocean" (Cahn Kim$
Mauborgne 2004) and eliminated the costs associated with entrance to the market.
Nevertheless, as Dropbox has a good customer base itmay be suggested that the venture should startto focus on
deliveringnew products to the market engaging product development practices defined by Ansoff.
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