Dropbox case - TD Entrepreneurship & Innovation - 1er semestre - M1 PDF

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Dropbox case - TD Entrepreneurship & Innovation - 1er semestre - M1...

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Dropbox case CVP: Integration: backup, sharing and synchronize. Dropbox was launch in 2007 like the iPhone. They think that people would like to synchronize and share files all over their devices. This market wasn’t taken because the other company in this domain proposed only the back up. That’s why Dropbox differentiate itself and could propose a higher price: because the value proposition was higher than the other companies on the market. Target: individuals (everybody). They decided to take the same direction than Apple, not the one of Blackberry. Blackberry product was more dedicated to business people, that’s why they failed. Apple dedicate its product to everyone. And Dropbox follows the direction of Apple for the targeting strategy. Lead-users: they’re the first users who try the product and the company takes their feedback about the product to improve it. They can contribute to the spread the product and influence other people to change them into customers. Dropbox didn’t have this problem, they didn’t have to convince everybody. Marketing investments have been done by the competitors and so the customers were already aware of the problem. They were searching a solution and when Dropbox appears, they finally had a solution => Dropbox didn’t use a marketing strategy thanks to their competitors. How do you define a business model?  It’s how a company makes money. From where the money comes from and how? Technology and operations: - Propertary IP: cost a lot of money, time, people with skills… you need to feel capable of doing it by yourself. - Cloud service and outsource to Amazon S3: they ask to Amazon to help because they didn’t have enough equipment (too expensive). Amazon was launch in the 90s so it was a company who had the capacities to help Dropbox. Also, the problem with this is that Dropbox doesn’t have the entire control over what depends on Amazon S3. Go to market plan: how do they promote their product? Their approach was by viral marketing. They used the system of sponsorship between users. Profit formula: how they’re gonna do profits.  Revenues – costs Here, the revenues are the subscriptions. The service is mostly free but if you want more space for stock or more options on your profile, you have to pay a subscription. The costs are fixed and variable. The variable costs are the management of outsources by Amazon S3. The fixed costs are salaries for the majority. The value proposition of Dropbox worked. It didn’t change over the time. The Amazon outsourcing worked also. But the marketing plan didn’t work: the viral marketing was a consequence of the concept of the company. They didn’t want to do that at first. Why entrepreneurs failed?  Because they propose a product that nobody need.

The good way to start a business is to do a minimum product and bring to the market. After that, you analyze what people want....