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We Know You Want It: An Explanation of Google’s Alphabet


On August 10th, CEO of Google, Larry Page, posted a blog announcing that Google will now be working under parent company, Alphabet. Like many, my reaction was “Ummmm. OK. What does that mean exactly?” When I think about Google, the first thing that comes to mind is conglomerate. Pretty much everyone connected to the Internet interacts with Google on a daily basis, whether through search, email, or Android phone. Google understands that periodic restructuring is vital to its longevity, and that is what Alphabet is all about, to ensure that Google remains as relevant in the future as it has since its inception.

The parent company, Alphabet, will now have separate corporate entities under it, one of which is Google. So, what does this mean exactly?

  • Google Can Now Be Google: Google has done a few projects that didn’t go down as planned-Google Glass anyone? When companies have a myriad of projects to tackle, it can weigh a company down. “We’ve long believed that over time companies tend to get comfortable doing the same thing…” says Larry Page “But in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.” By relinquishing some of that control to companies under the Alphabet umbrella, Google can now focus on being the cutting-edge leader in Internet-centered applications, such as Chrome, Android, YouTube, and Google Maps.
  • Research Projects Get Their Own Attention: Visionary projects that were once operated under the Google umbrella will now have their own executives and own individual attention, programs such as Project Loon, Google Fi, and Android Wear. By allowing them to operate autonomously, these smaller companies will now have more authority to make decisions, which could help drive innovation to the benefit of consumers…and investors.

  • Of Course, the Possible Downsides: Risky chances are called that because, well, there are risks. In this case, some have speculated that the end result of this restructuring will cause a kind of business chaos. By having multiple CEOs operating their own business under Alphabet, each with their own way of doing things, internal struggles for funding and attention may arise.

Whatever the case, this is a pretty drastic shake-up of the Google we know. Alphabet has even filed with the SEC that their name will replace Google’s on the NASDAQ, whose shares rose 6% in after-hours trading following the restructuring announcement.

One thing is certain: even hugely successful companies know that just staying the course does not allow for growth. Let On Target Web Solutions help your company flourish by applying our expertise in all areas of Orlando digital marketing to your online presence. Give us a call at (866) 998-6886, or contact us online.

Peace out,