|Due By (Pacific Time)
||12/06/2016 01:00 pm
Read the file attached. Pick one of the questions below and answer it in two pages (please inform me before which question you picked). While reading, think about the opportuity Houston saw and the key elements of Dropbox's current business model.
- Is Dropbox profitable as of June 2010? Are you optimistic about its prospects? How does your estimate of Dropbox's current profitability influence your evaluation of the venture's prospects?
- When he applied to Y Combinator (see case exhibit 2), what hypotheses did Houston hold about key elements of Dropbox's business model? As of June 2010, which of these hypotheses has been confirmed and which have been discarded? What is your assessment of the approach Houston used to test hypotheses? Did he waste time/resources or make notable mistakes? Can you imagine better ways to test the key hypotheses?
- Imagine that at the same time Dropbox was founded, Google decided to target the opportunity that Houston had identified. How would Google's approach to pursuing "G-Drive" have differed from the approach that Houston's team followed?
- What should Houston do about the decision posed at the end of the case, i.e., creating a separate version for small and medium-sized business (SMB) customers? What process should he use to make this decision?