Dropbox: 'It Just Works'

Abstract

Dropbox is a venture-backed Silicon Valley startup, founded in 2006, that provides online storage and backup services to millions of customers using a "freemium" (free premium offers) business model. The case recounts Dropbox's history from conception through mid-2010, when founder/CEO Drew Houston must make strategic decisions about new product features, how to target enterprise customers, and whether to pursue distribution deals with smartphone manufacturers.

Learning Objective: Illustrate the application of "lean startup" management practices, including reliance on a "minimum viable product" and A/B testing to optimize product design and marketing strategy.