Dropbox

In a highly commoditized market against the tech giants, how will Dropbox find

a competitive advantage in order to survive?

ReducedMargins

MoreCompetitors

LessDifferentiation

In a highly commoditized market against the tech giants, how will Dropbox find

a competitive advantage in order to survive?

Dropbox offers: Cloud storage, file synchronization, and client software.

3.3BiSharing connections

1.2BiFiles saved Every day

500miUsers

150kBusiness users

So Far So Good…

Apr'11 Jul'12 Nov'12 Jul'13 Sep'13 May'14 Jun'150

100

200

300

400

0%

30%

60%

90%

120%

2550

100

175200

300

400100% 100%

75%

14%

50% 33%

Registered Users (LHS) Y-o-Y Growth Rate (RHS)

27%

27%23%

21%

3%

Dropbox icloud OneDriveGoogleDrive BOX Amazon

Market

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

2007 2016

The beginning of the end of the physical storage

Cloud storage becomesa commodity

Software indifference – great interoperability

Valuable?

Rare?

Costly to Imitate?

Organized to Capture Value?

Competitive Advantage?Parity

Software indifference – great interoperability

2007 2016

5GBFree

$1.99

$9.99

10GBFree

$10

15GBFree

$1.99

$9.99

up to

16GBFree

$XXX

$9.99

15GBFree

$1.99

$6.99

100GB

1TB

Monthly payments

100GB

1TB

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

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

MachineHuman

Few big competitors

Many small competitors

Swarm Bots Era

Giant Tyrants Era

Minions Era

Savvy Landlords Era

Data

ow

ner

Decision owner

1. FILE SEARCH

2. BOX ACQUISITION

3. IOT CENTER

RECOMMENDATIONS

Free extra space When you share your files

The files are already there

No efficient online

File search on the market

1. FILE SEARCH

2. BOX ACQUISITION

Defensive Strategy

Add Business Users

Additional Revenue Stream

2016 2020

Multi PlatformIOT devices

Dropbox as the centerof the IOT data.

3. IOT CENTER

Voice Interaction3D Screen

Data visualization

Any data Anywhere

Short time offensiveStop the bleedingShort time defensive

Long term offensive

Start the recovery Conquer the Future of the Cloud

Dropbox ALL your data, ONE place