possible substitutions, making innovation and differentiation their key ally. The industry of advertisement is full of rivalry, which may be the factor that prompted their interest in diversification. Strategic alliances and partnerships must be considered to ensure that Alphabet can maintain the market share that they have carved out for themselves. Competitive Advantage Alphabet’s competitive advantage remains in their ability to create platforms that are universally appealing to users to continue to drive advertisement revenues. In addition, they possess the advantage of capital to invest in innovative consumer solutions. This diversification is what has transformed Google as an information-based organization into Alphabet, a tech company. Recommendations
STRATEGY FOR GOOGLE’S IMPLEMENTATION OF ALPHABET, INC. 8 Alphabet should continue to utilize the information sourced from their Google division to make strategic investments in their “Other Bets” holding. Though they continue to show growth in advertisement, they already represent 73.1% of U.S. internet advertising revenues (Graham, 2019). Under such consideration, the room for revenue growth becomes smaller. It is imperative for Alphabet to emerge as a tech company representing an array of differing ventures to capitalize on new market revenue opportunities. This qualifies Alphabet as an ambidextrous organization. Their establishment as a holding company that separated their company interests is confirmation of that. Though they rely heavily on the revenues produced from their Google division, they show no slowing in investing in their “Other Bets” venture with the intention of developing new revenue streams.
STRATEGY FOR GOOGLE’S IMPLEMENTATION OF ALPHABET, INC. 9 References Alphabet, Inc. (2017) Alphabet, Inc. Annual Report 2017. Retrieved from Dess, G. G., McNamara, G., Eisner, A. B., & Lee, S-H. (2019). Strategic management: text & cases (9th ed.). New York, NY: McGraw-Hill. Google - About Google, Our Culture & Company News. (n.d.). Retrieved from Graham, M. (2019, October 15). Amazon is eating into Google's most important business: Search advertising. Retrieved from - googles-dominance-in-search-ads.html Page, L. (n.d.). Alphabet. Retrieved from Waters, R. (2014, October 31). FT interview with Google co-founder and CEO Larry Page. Retrieved from - 00144feabdc0#axzz3I1QpwhR1
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