Alphabet Success Story
Alphabet Success story Company Profile is an initiative by ListMyStartUp to publish verified information on different startups and organizations. The content in this post has been approved by the organization it is based on.
The Other Bets segment consists of businesses such as Access, Calico, CapitalG, GV, Verily, Waymo, and X. The company was founded by Lawrence E. Page and Sergey Mikhaylovich Brin on October 2, 2015 and is headquartered in Mountain View, CA.
Alphabet – Company Highlights
- Startup Name-Alphabet Inc.
- Headquarters-Googleplex, Mountain View, California, U.S.
- Industry-Conglomerate
- Founded-October 2, 2015
- Founder-Larry Page, Sergey Brin
- CEO-Sundar Pichai
- Areas Served-Worldwide
- Website-www.abc.xyz
Alphabet – About and How it Works ?
Alphabet Inc. is an American multinational conglomerate headquartered in Mountain View, California. It was created through a restructuring of Google on October 2, 2015, and became the parent company of Google and several former Google subsidiaries. The two co-founders of Google remained as controlling shareholders, board members, and employees at Alphabet. Alphabet is the world’s fourth-largest technology company by revenue and one of the world’s most valuable companies.
Alphabet – Logo and its Meaning
The Alphabet logo uses the language of visual symbols to explain the differences between the companies, Google and itself. In comparison with the Google logo, it looks more serious, like a grown-up in comparison with a teenager.
Alphabet – Founder and History
On August 10, 2015, Google Inc. announced plans to create a new public holding company, Alphabet Inc. Google CEO Larry Page and Sergey Brin made this announcement in a blog post on Google’s official blog. Alphabet would be created to restructure Google by moving subsidiaries from Google to Alphabet, narrowing Google’s scope.
On December 3, 2019, Page and Brin jointly announced that they would step down from their respective roles, remaining as employees and still the majority vote on the board of directors. Sundar Pichai, the CEO of Google, is to assume the CEO role at Alphabet while retaining the same at Google.
Alphabet – Mission
Alphabet’s mission statement says, “Empowering great entrepreneurs and companies to flourish. Investing at the scale of the opportunities and resources we see. Improving the transparency and oversight of what we’re doing. Making Google even better through greater focus.”
Alphabet – Team
CEO of Alphabet – Sundar Pichai
CEO of Alphabet, Sundar Pichai
Larry Page and Sergey Brin – Founders
Sundar Pichai – CEO
Andrew Urman – Program Manager
Thomas Insel – Google Life Sciences Team
David Drummond – Senior Vice President of Corporate Development
Eric Schmidt – Executive Chairman
Barnaby James – Principal Software Engineer
Alphabet – Subsidiaries
Few of the main subsidiaries of Alphabet are Google, X, Sidewalks Lab, Waymo, Calico, Verily, Fitbit, Deepmind, Wing and Firebase.
Alphabet – Business Model
Alphabet, Inc. is a holding company for Google and several other firms formerly owned by Google. The corporation operates two reportable business segments:
Google – Consists of various Internet products, including Search, YouTube, Maps, Commerce, Ads, Android, Cloud, Apps, Chrome, and Google Play, as well as hardware products such as Chromebooks, Chromecast, and Nexus. This segment accounts for the vast majority of Alphabet’s revenues.
Other Bets – Consists of various operating segments that the company deems “not individually material” (do not meet certain quantitative thresholds). These include the companies Access/Google Fiber, Google Capital, Calico, Verily, Next, GV, and X, and other initiatives.
Alphabet – Revenue and Growth
Alphabet has one primary revenue stream, online advertising from third parties. It is divided into two main categories:
Brand Advertising – Increases users’ awareness of advertisers’ offerings through video, images, text, and interactive ads that play across different devices. Alphabet helps third parties display digital videos and other ad types to specific audience groups for their marketing campaigns.
Alphabet revenue for the twelve months ending September 30, 2020 was $171.704B, a 10.74% increase year-over-year. Rest of the years’ trends are :
Year Amount Percentage Change From Last Year
2019 $161.857B +18.3%
2018 $136.819B +23.42%
2017 $110.855B +22.8%
Alphabet – Investments
Alphabet has made 11 investments. Their most recent investment was on Jul 15, 2020, when Cityblock Health raised $53.5M.
Alphabet – Acquisitions
An analysis of the company’s investments in 2017 suggested that it was the most active investor in that period, outdoing the capital arm of Intel and also its own best customer. Alphabet, Inc. acquired seven of its own capital-backed startups in the 2017 financial year, with Cisco second having acquired six of the company’s previous investments.
Flatiron Health, a startup founded by two former Google employees and backed by Alphabet, Inc., announced that it was to be acquired by health conglomerate Hoffmann-La Roche for $1.8 billion. The company provides electronic medical records and analysis to identify improved treatments for oncology patients
Alphabet – Competitors
Alphabet, Inc.’s top competitors are Baidu, Microsoft, Apple, Amazon, Facebook, Oracle, SAP, IBM, Salesforce, Sony, HP, SAS, Box, Dell, Samsung, HTC, Huawei, LG Electronics, Philips, ASUS, Cisco, Lenovo, AWS, Toshiba, Motorola, VMware, Adobe and Infor.
Alphabet – Challenges Faced
A recent Wall Street Journal investigation found that contrary to some of the company’s claims, it routinely intervenes in search results, even favouring the results generated by big businesses such as eBay over smaller ones. Any such activity is likely to draw the attention of regulators, as well.
Sceptical Employees – Alphabet is still one of the most sought-after employers in Silicon Valley. But a vocal contingent of its workers disagree with the company’s policies and direction. For instance, Pichai navigated Google through a worker revolt last year over Project Maven, a contract with the military to analyse drone footage. (Google did not renew the contract.)
Alphabet – Future Plans
Alphabet Inc., the parent company for the search engine Google, will look to become just the third US-listed company to enter the $1 trillion market cap club in 2020. The stock will need to rise by about 8% between now and the end of 2020 to join this exclusive club. It isn’t going to be an easy task for the equity, especially if earnings growth slows as analysts project.
Google CEO Sundar Pichai says the company has offered a competitive platform that has lowered prices advertisers, giving consumers more choice, according to prepared remarks the executive made ahead of Wednesday’s hearing before the House Antitrust Subcommittee.