Google Inc. has performed tremendously since its inception. The company has been on the front foot in terms of innovation and Google Alphabet is one of the most recent developments in that regard. In early August, Google Founder, Sergey Brin and Larry Page made an announcement that they would be starting a new company which will go by the name “Alphabet.” Ideally, as noted by one Larry Page is mainly a collection of companies, with Google being the largest in that ensemble. The two co-founders have simply created a new company that will take care of their future endeavors, whereby Google will be housed. What exactly does this mean for the company as a whole going forward?
The roles of the Google Founders
With Alphabet, Page and Brin have simply created a world whereby Google is just but a piece of what they deem to be a larger puzzle. Therefore this new innovation represents a diversion from the common whereby they are now focused on managing the bigger picture for the common good of the company and the millions of internet users who love to make use of Google products. This is an umbrella that embodies a slew of new companies with each one coming with the need of qualified executives of their own.
The most notable of these executives is one Sundar Pichai who has since been promoted to the role of the new CEO of Google. Pichai is someone who is best knowledgeable about the company as a whole and therefore is best suited to take over the mantle of leading it towards success. Moreover, people who have worked with him before within the company will most definitely appreciate the role that he plays in that status.
New ventures equal new companies
Previously, Google had announced a myriad of new projects and ideas such as Google X. This was ideally an experimental lab that focused on driverless cars and drones with fiber, a high-speed internet initiative also coming into the mix. With the implementation of Alphabet, such types of ventures won’t be part of Google. However, they will be formed into separate companies and then housed under the overall Alphabet holding corporation. This offers the new ventures more room for them to grow and operate within their own spaces being independent of the Google search engine element. Moreover, this new revelation means that the new ventures are less likely to be attached to any liability in case of lawsuits like the ones that have been filed against Google already.
Slimmer with more transparency
This new development represents a slimmed down Google with even more transparency. In the new world that is Alphabet, Google is expected to cut itself into a version that will focus on the core business operations such as e-email, search, Android and YouTube. By doing this, Google will not have to weigh through the costs of far-reaching complex projects but instead be judged on results that emanate from its core operations. Of course, this is something that is expected to please many shareholders in the process.
The other major benefit that will be drawn from Alphabet would be transparency. This is mainly with regards to the company expenditures and revenue numbers. Over the years, many investors have wanted Google to be transparent in terms of capital spending and as things stand, they will most definitely get their wish. In terms of reporting, Google will be able to make the right reports at the right time since it has all the necessary documents and departments to take care of them. It is also necessary to note that Alphabet will represent an extension beyond the Google brand. The company image is expected to get even better as time goes by. The fact that all of their consumer-facing products are branded with Google offers even more benefit to the company.