ALPHABET INC
Alphabet Inc. is a worldwide technological conglomerate holding corporation located in Mountain View,
California. On October 2, 2015, it was formed as a result of a Google reorganization, and it became the
parent company of Google and numerous previous Google subsidiaries. Alphabet Inc. is a holding
corporation. Google and Other Bets are two of the company's segments. Google Services and Google
Cloud are part of the company's Google business. Google Services products and platforms include
Android and Chrome. Google Drive, Google Maps, Google Photos, Google Play, etc.
Produces: Advertising technologies for advertisers, agencies, and publishers to power their digital
marketing businesses.
Sells: Performance advertising, brand advertising, google play(app sales and in-app purchases)
hardware(chrome tablet/laptops), YouTube for non-advertising(via subscription), Google Cloud Platform
(generates revenues from infrastructure, platform, and other services), Google Workspace (cloud-based
tools for enterprises such as Gmail, Docs, Drive, Calendar and Meet, generates revenues via consumption
or subscription )
Competition in the Industries:
General-purpose search engines and information services such as Baidu, Bing, Yahoo, Yandex
Vertical Search Engines and e-commerce providers such as Amazon, eBay (e-commerce); Booking’s
Kayak (travel queries); LinkedIn (job queries); WebMD (health queries).
Social Networks offered by ByteDance, Meta, Snap, and Twitter.
Other online advertising platforms and networks such as Amazon, AppNexus, Criteo, and Meta,
compete for advertisers that use Google Ads.
Other forms of advertising, such as billboards, magazines, newspapers, radio, and television.
Companies that design consumer hardware products such as Amazon, Apple, and Microsoft.
Digital assistant providers, such as Amazon and Apple.
Providers of enterprise cloud services, such as Alibaba, Amazon, Microsoft, and Salesforce.
Providers of digital video services, such as Amazon, Apple, AT&T, ByteDance, Disney, Hulu, Meta,
and Netflix.
Other digital content and application platform providers, such as Amazon and Apple.
Providers of workspace connectivity and productivity products, such as Meta, Microsoft, Salesforce,
and Zoom.
We decided to choose Aphabet Inc because we thought it would be interesting and educated to work with
a company that has digital assets.
Investment Thesis
K. Ram Shriram, one of Alphabet's independent directors, is the company's largest individual shareholder
of Alphabet's Class A common shares. Shriram holds 64,112 shares of GOOGL as of Oct. 8, 2021,
accounting for about 0.01 percent of total outstanding shares. According to the company's 13F filing for
the fiscal year ending June 30, 2021, Vanguard Group Inc. is the largest institutional stakeholder of
Alphabet's Class A common stock, owning 22.8 million shares, or 7.6 percent of total GOOGL shares
outstanding. Larry Page, Alphabet's co-founder, and the director is the largest individual shareholder of
Alphabet's Class C common stock. Page holds 19.8 million shares in GOOG as of Oct. 8, 2021,
accounting for about 3% of all outstanding shares. According to the company's 13F filing for the fiscal
year ending June 30, 2021, Vanguard Group is the largest institutional stakeholder of Alphabet's Class C
common stock, owning 21.3 million shares, or 6.6 percent of total GOOG shares outstanding. Plus,
GOOGL is owned by institutions for $238.4 million shares or 79.00% of the total number of shares
outstanding. This is in line with the average for the Internet Software/Services business.
SWOT Analysis
Weakness
The corporation is vulnerable to dropping ad prices, which might reduce advertising income.
The firm is heavily reliant on ad income.
Advertising income is very important to the organization.
Alphabet falls behind in Pixel series smartphone sales
Other businesses of the corporation have not yet contributed significantly to the bottom line in terms of
sales and profitability.
Threats
Alphabet confronts tremendous competition, even though most of that competition is now far behind.
To stay competitive, the corporation may need to raise its R&D investment.
Because Alphabet works on a worldwide scale, they are vulnerable to currency swings.
The most dangerous may not be business-related, but rather government attempts to penalize Google's
success.
Alphabet Inc corporate, business, and functional strategies
Corporate strategy includes:
The company focuses on a stability strategy approach, in which it primarily focuses on resource
utilization and developing a competitive edge in the marketplace. A market growth strategy is chosen for
long-term growth. The retrenchment strategy, turnover strategy, liquidation strategy, and disinvestment
strategy aid in financial sustainability in a marketplace.
Strategies for business:
One major technique is to establish multiple branches throughout the globe as part of a diversification
plan. Continually providing innovative goods and services via the use of cutting-edge technology is
another approach that works alphabetically. It aids in maintaining a consistent presence in the market and
gaining a larger number of clients and market share. Acquisitions of firms are one of the alphabet's
primary strategies for gaining corporate culture and gaining a competitive edge. Profit maximization is
one of the primary ecological strategies.
Functional approaches:
Enables each branch unit to deploy the appropriate approach to one major core strategy and successfully
execute it. One functional approach is to establish required capabilities in each company using the
strategies listed below. Any acquisition-related issues are mitigated by the technique outlined below.
Superior personnel and management regularly apply innovative tactics in Alphabet corporate company
functional strategies.
NOTE:
All of the following information was obtained by referring to several case studies, reviews, and
material in boks and online. For further information,
https://www.sec.gov/ix?doc=/Archives/edgar/data/1652044/000165204422000019/goog-
20211231.htm#i0ef93c820da04204a9c5a49f49a3b2eb_16
