Dropbox’s intelligent differentiation


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Dropbox’s intelligent differentiation

Follwing the presentation about Dropbox in week 3 when we compared Cloud services such as Google Drive, Dropbox and SkyDrive it is interesting to see how Dropbox’s approach differs compared to the rest. They are all essentially offering the same service but Dropbox seems to have an edge when it comes to their marketing strategy and securing that loyal consumer base that virtually every such web-based file hosting (free) service provider is after. Like the rest, it operates under a ‘Freemium’ business model (where people can get started for free, but pay for more space as they want to host more files) but is luring in customers and increasing brand awareness with rather interesting pursuits, two of which are the ‘The Great Space Race’ (which we’re all familiar with) and the 50 GB free storage offered with Samsung smartphone devices (e.g.: Galaxy S3 and the Note 2).

Being an independent cloud storage vendor, Dropbox is making an impressive initiative to create an impressionable footprint amongst college students and adults alike with the Space Race that seems to have Universities hooked. It is interesting to note that the free space is offered for ‘2 years by default’ so they will probably rely on the Freemium model to generate cash flows from the very same Space Race participants two years down the line.

The alliance with Samsung could not have come at a better time with the Galaxy S3 selling over 20 million units worldwide and the Galaxy Note 2 being an even more striking device with enhances specifications, catering to the ‘phablet’ market. Consumers associate this free 50 GB to be an excellent ‘freebie’ along with the added advantage of all files being automatically synced and saved on the cloud in case you lose your device.  My friend and I were on holiday when is Galaxy S3 was stolen and it’s thanks to Dropbox that we have a few (3) pictures that we managed to salvage. The rest were lost because he didn’t bother connecting to WiFi (… long story).

In essence, I think Dropbox is doing a fantastic job of keeping themselves a mile ahead of the competition and finding more and more innovative ways to differentiate their essentially similar service. I’m curious to see what they do next and hopeful at the same time.

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