Question 1
Drop box is a company dealing with the backup of files and data for companies. It therefore deals with sharing of information and data through networks for the purposes of security. This company has a competitive edge over the others like carbonate and Mozi. Drop box has a higher storage capacity in the account of the customer making them also easy to share files from one account to another while both Mozy and Carbonite have no capability of sharing files. This product is easy to use and it provides search capabilities in full-text.
It is also compatible with Macs, Linux and PCs operating systems while Mozy and Carbonite are not compatible with the Linux operating system. It may also have the accessibility of mobile applications. It provides the options not to undelete the files because they can be retrieved easily. It has a competitive edge over Mozy and Carbonite because it has full text searching capabilities where the others do not have. Mobile applications are not possible in Mozy and Carbonite. Initial backup in Mozi and Carbonite takes like three days for an initial backup. This gives the Drop box a competitive advantage over the others in the provision of it services to the customers.
Drop box is more effective in storage and sync functions when compared to Mozi and Carbonite and this makes the this company to maximize in the storage and sync functions and putting less focus to the backup function.
Question 2
`1The Dropbox Company maintains a wide variety of customer segmentation in enhancing product access from its wide range of customers. However, among this, the company maintains a strong online customer capacity. The targeted customer segment for online data storage and back services also posses numerous challenges in acquiring a substantial market share.
`The main idea behind the Dropbox Company penetrating the highly unique market sector was to capitalize on the existing inefficiencies posed by the main market players which existed at the moment. The major firms initially ii existence only managed to secure small =numbers of clients whom they offered them with remote datacenters and outsourced online data storage services.
`Such groups in great need of online data storage and information sharing services such as college students and professional practioners in their various fields of practice formed the major component of the targeted market segment by the dropbox company.
QUESTION 3
Carbonate uses a more expensive an older model as compared to Drop box which uses a simple business model which is a product of cloud computing a swell a data backup services. Carbonate relies on air in advertising and promotion of its sales as well a penetrating into the market therefore radio transmissions are of greater use in their business awareness in order to reach many customers. This made the costs to increase every year as the business grows in size. This affects their ability to attract customers.
Drop box, on the other hand, has a stronger and powerful business model which helps it achieve higher levels of profit. The business model for Drop box is therefore a better option due to the reduction of costs attached to it which results from the increase in the cloud computing applications.
Question 4
The Dropbox Company utilizes a number of inherent pricing strategies that aids the company in attaining its specific goals and objectives. During the initial stages of the dropbox company establishment, the company utilized pricing strategies that aimed at enabling the company penetrate into the market. This mainly entails pricing their products at substantially lower prices compared to those of its competitors.
The highly effective, efficient and high quality products and services offered by the drop company at relatively lower prices enabled it penetrate the market easily and effectively compete with its competitors. This enabled the company attain a larger market share compared to its competitors such as the Carbonite and Mozy which continuously priced their products and services at substantially higher prices. The competitors companies which had not effectively invest in efficient service and product provision lost many of their clients to Dropbox company which had heavily invest in the use of modern I.T technology concepts in providing high quality products and services at lower prices.
Question 5
Dropbox Company utilized a moderately lower pricing strategy on its products and services as go to market pricing model. This mainly enabled the company attain market penetration an effective market share. Through profits accruals through expansive market share led to the expansion of the company through product diversification. The increased revenues as a result of company expansion has enabled the company offer its products and services at further reduced prices due to the economies of scale. The Dropbox Company enjoys expansive market share thus increased revenues as a result of the moderately lower pricing techniques as compared to that of its competitors.
Question 6
Dropbox Company incurred substantial amounts of capital costs in acquiring its customers. This was mainly through rigorous advertising and marketing to popularize its products among various consumer groups. It roughly cost the company 1000’s of U.S $ customer acquisition during the company’s establishment. However, this drastically reduced as a result of increased efficiencies in marketing management through the reduction of advertising costs.
QUESTION 7
The cost of carbonite’s acquisition is decreases as the business expands. The cost has gradually decreased as the business expands. This therefore means that the business is growing which makes it profitable in the future. It is therefore worth investing in this business.
QUESTION 8
This case shows that the lifetime value of the customer is high and increasing as indicated by the increase in the customer retention from seventy eight(78) percent to eighty (80)percent. The operating loss has also been decreasing over time which shows a positive progress, this leads to profitability of the business in the long run. The customers started signing the contracts which
Question 9
Dropbox has laid all the important strategic models to beat the file synchronizing and storage market which requires effective implementation and feedback observation. Electronic and technological markets are of high dynamism thus necessitating a closer attention for up to date trends in markets for instance having strategies to accommodate technological changes.
As in any other business, customer maintenance is of undisputable importance as it is clearly evident in Dropbox that it is initially costly to acquire customers estimated at more than $300 per a customer. This can achieved through improvisations of customers services including after sales services thus creating customer’s satisfaction.
Google G-drive is highly developed in terms market awareness and so to avoid over run Dropbox should rely on customer feedback loops so as to maintain provision of demand driven products and services. Product and service simplicity is of reasonable need as it safes time on the side of potential customers for instance Dropbox should unify its terms of services and policy agreements.
Market share acquisition with maintenance of normal profit should be the aim of any technological company including Dropox, so to help in policy and strategy implementation having in mind other competitors marketing strategies.
References
Mason, R., & Rennie, F. (2006). E-learning: The key concepts. London: Routledge.
