Search engine giant Google just made a major business change by announcing Alphabet. Here are the basics and what to expect.
Traditionally business happens slowly; small changes create a foundation upon which to build a brand. But as we have seen over the past 16 years, Google doesn’t follow traditional business practices. Google announced yesterday that they are branching up – not out – with the creation of a parent company, Alphabet.
Larry Page, Google’s CEO, wrote in his blog post G is for Google posted August 10, 2015 that as a company Google “always strived to do more, and to do important and meaningful things with the resources we have.”. As Google grows, the company is looking to become “cleaner and more accountable”; they think that creating a new parent company to work as a collection of different companies (including Google) will help achieve that. The parent company has registered the domain abc.xyz to serve as its main website.
It’s pretty exciting news, not only because of their brilliant use of a gLTD, but because Google has major influence on the strategies the world uses to conduct business on the internet. So in an effort to stay up to date with the latest Google developments, here is the A-F of their latest announcement:
A is for Alphabet
According to Page’s post, Alphabet will be a collection of different companies with Google taking the lead. The other companies will include Life Sciences (the company researching glucose-sensing contact lens), Calico, and X lab which focuses on drone delivery.
B is for Brand
Google will still be Google; not much is changing besides a slimming down and some transparency. Alphabet will work as a way for Google to branch out to other industries without taking the Google brand along for the ride. Alphabet can reach towards new developments and research while Google can do what it does best for users on the web.
C is for CEO
Larry Page will become Alphabet’s CEO with Sergey Brin as President. Sundar Pichai will be taking over the CEO spot at Google, while the founders branch up and away for new technologies.
D is for Diverse
Google has long been branching out to projects like high-speed internet connections and venture-capital investments. With acquisitions like YouTube the company has quickly spread to pique many other interests beyond search engines. Alphabet will allow Google to reach even further with companies like Calico, a project looking to help humans live longer, and Nest, a smart-home-devices company.
E is for Entrepreneurs
Alphabet is on the hunt for great new ideas from blossoming small businesses. This could prove to be an amazing opportunity for those looking for a leg up for their new product or idea. Just how many start-ups will be backed by Alphabet is anyone’s guess but we can assume that we will see a few rags to riches stories in the near future.
F is for Financial
Big news like Alphabet isn’t always great for stock prices, but by looking at the numbers we can assume that investors don’t seem to be too worried. Wall Street seems to be in favor of the changes: Google shares rose $680 by the end of the day, up almost 5.5%.
Page concludes the announcement by acknowledging that Alphabet isn’t about becoming a consumer giant brand, but will hopefully allow Alphabet companies the independence to develop their own brands. Read the entire post here.
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