Google Takes A Different Route By Creating The...Alphabet?

10:35 AM Unknown 0 Comments



A non-film news related topic? Well, it is time to explore the corporate side of the world a tad more with probably one of the most interesting changes that have occurred at a corporation. Usually it isn’t uncommon to see companies to start subsidiaries to work on projects that are distinctly different from their normal practice. Google has been expanding quite a bit in the last few years into industries far removed from their classic search engine service, so they decided to go a different route. Google will officially be a part of a newly founded mother firm known as “Alphabet”.

According to the co-founder of Google Larry Page: “Alphabet is mostly a collection of companies. The largest of which, of course, is Google. This newer Google is a bit slimmed down, with the companies that are pretty far afield of our main Internet products contained in Alphabet instead.” Furthermore he states the reasoning behind this corporate change is “Fundamentally, we believe this allows us more management scale, as we can run things independently that aren’t very related. Alphabet is about businesses prospering through strong leaders and independence.”[1]

Google will still entail all online-based services, such as ads, maps, apps, YouTube, android and any relatable infrastructure, while Alphabet will handle the business and investment of various services including Calico, Nest, Google Fiber, Google Ventures or Google Capital. This should also include Boston Dynamics, but while it supposedly should enhance the transparency between the companies, some analysts are skeptical.[2]

I am certainly no expert in the field, but on the one hand I can understand the need to keep Google focused on the online market, as venturing too far out could only confuse the corporate culture. Yet on the other hand, one would think Google has gathered enough brand recognition that it will stand out even if the parent company is named Alphabet, which doesn’t really have much of a personality, as it is something we all learn when we are children. Managerial speaking it does make sense to give each company, or subsidiary now of Alphabet, a level of independence with an overarching father company keeping an overview of specific tasks. Only worry is if they can sell the world on the importance of Alphabet, or if people will simply only refer to it as Google.

What are your thoughts on the matter? Leave a comment below!

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