Description: Nothing concentrates minds at a tech start-up like living in the middle of a price war between Amazon and Google. Just ask executives at companies like Box, Dropbox and Hightail
Date: Aug 24, 2014
“These guys will drive prices to zero,” said Aaron Levie, co-founder and chief executive of Box. “You do not want to wait for Google or Amazon to keep cutting prices on you. ‘Free’ is not a business model.”
So how do you avoid free? Box is trying to cater to special data storage needs, like digital versions of X-rays for health care companies and other tasks specific to different kinds of customers. Hightail is trying to do something similar for customers like law firms. And Dropbox? It is trying to make sure that its consumer-minded service stays easier to use than what the big guys provide. READ REST OF STORY
Questions for discussion:
- Using Porter’s model for competitive advantage, how do you feel that someone like “Dropbox” will compete in this changing industry? Explain which generic strategy they will pursue.
- Do you feel the larger companies like Google or Amazon will drive these smaller one out of business? Why or Why Not?