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Strategy - Dropbox
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- 2. In a highlycommoditized market against the tech giants, how will Dropbox find a competitive advantage in order to survive?
- 3. Reduced Margins More Competitors Less Differentiation In a highlycommoditized market against the tech giants, how will Dropbox find a competitive advantage in order to survive?
- 4. Dropbox offers: Cloudstorage, file synchronization, and client software. 3.3Bi Sharing connections 1.2Bi Files saved Every day 500mi Users 150k Business users
- 5. So Far SoGood… 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. 27% 27% 23% 21% 3% Dropbox icloud OneDriveGoogleDrive BOX Amazon Market
- 7. Strengths • First MoverAdvantage (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. 2007 2016 The beginningof the end of the physical storage Cloud storage becomes a commodity Software indifference – great interoperability
- 9. Valuable? Rare? Costly to Imitate? Organized to CaptureValue? Competitive Advantage? Parity Software indifference – great interoperability 2007 2016
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- 11. Valuable? • Product differentiation? • CustomerValue? 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. 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. MachineHuman Few big competitors Manysmall competitors Swarm Bots Era Giant Tyrants Era Minions Era Savvy Landlords Era Dataowner Decision owner
- 14. 1. FILE SEARCH 2.BOX ACQUISITION 3. IOT CENTER RECOMMENDATIONS
- 15. Free extra space Whenyou share your files 1. FILE SEARCH
- 16. 2. BOX ACQUISITION DefensiveStrategy Add Business Users Additional Revenue Stream
- 17. 2016 2020 Multi Platform IOTdevices Dropbox as the center of the IOT data. 3. IOT CENTER
- 18. Voice Interaction 3D Screen Datavisualization Any data Anywhere
- 19. Short time offensive Stopthe bleedingShort time defensive Long term offensive Start the recovery Conquer the Future of the Cloud
- 20. Dropbox ALL your data,ONE place
Editor's Notes
- #14 In our scenario analysis we considered a 15 year time horizon. Y – axis We chose Y axis as the suppliers axis and we analyzed the ownership of the data. On the extremes we have on one side few big competitors that owns and fights all the data of the world. They will be so powerful and full of resources that the barriers to entry will be huge. As example we can consider on one side a Swarm Economy of individuals and networks where everyone can own soma data thanks to his competitiveness while on the other side an economy dominated by Google, Apple, FB… that will have reached the ultimate competitive advantage. X – axis This axis will focus on the customer side and it will deal with the ownership of the decisions. On one extreme side the “humans” will take all the decisions based on the data they collect and visualize from their devices. On the other side, the humans will leave most of the decisions to machine algorithms that will take the best decisions according to all the data that are collected. As example: considering a person that is going out for dinner on the left side he or she will evaluate all the data he/she has (available budget, restaurant of the area, his taste, his mood…) and will decide where to go; on the right side the individual will entrust an algorithm to analyze the same data (to be accurate the algorithm will probably have available even more data like the person physical needs, time he will start to feel tired and will want to leave to home…) and come out with the decision. I – Swarm bots Era In the Swarm bots Era many small firms/networks of individuals will own a small part of data and most of the decisions will be taken by algorithms developed by small firms/networks of individuals. II – Giant tyrants Era In the Giant tyrants Era a few gigantic firms will control the data and will steer most of the decisions of the people. III – Savvy landlords Era In the Savvy landlords Era a few companies will own the data and serve the people by providing the requested information and data that the individuals will use to take their own decisions. IV – Minions Era In the Minions Era a lot of small firms and individuals will own the data and they will provide all the relevant data to the people to make the final decisions.
- #19 Interoperability is the main resource of Dropbox what helps it to partner with IOT devices, gather all the data and give users opportunity to benefit by having all the data in one place. Interoperability - is a property of a product or system, whose interfaces are completely understood, to work with other products or systems, present or future, without any restricted access or implementation. What we offer to Dropbox is to stick with initial valuable resource and simple business model of creating the place where the user’s data lives and expand the concept of data on gaining more valuable information from various IOT devices. The core business of the Dropbox as a data storage company will be to package all information from different channels and provide multiplatform application for smart devices to present information to customer. Additional feature what Dropbox engineering team should work on user interface part is Voice interaction, 3d screening and Data visualization technologies to allow users review all information from one single application whenever and wherever they want.
- #21 We are now open for questions