In August of 2015, the company formerly known as Google, restructured itself by creating a holding company called Alphabet and placing the Google search company and its other initiatives as subsidiaries under this new company. The initial announcement that Google was restructuring led to many questions as to why the company decided to undergo such a major change. The general consensus among business professionals was that the company wanted to make its various businesses clearer to investors. In essence, the core advertising and search business of Google would now be separate from its other non advertising businesses such as Calico, Google X, Fiber, Nest, etc. After the restructuring Google retained the same breakdown of shares the company
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As the umbrella company, Alphabet Inc., through its subsidiaries, provides online advertising services, performance and brand advertising services globally. Alphabet is broken down into two major efforts. The Google effort focuses on internet products such as, Search, Ads Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, such as Virtual Reality. In addition, Google also sells hardware such as Chromecast, Chromebooks, and Nexus. The Other portion includes the non internet product businesses, such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X, and other initiatives. ("GOOG - Stock quote for Alphabet Inc - MSN Money," …show more content…
In essence, the company was able to manage its ever growing business ventures as well as better manage and allocate its finances. This transition also helped to ease the minds of shareholders who were becoming uncomfortable with Google’s expansion into areas outside of internet related services. As a result of the reorganization, the only portion of Alphabet Inc. that would be viewed as a monopoly is the internet searching portion of Google. Google Sites led the U.S. explicit core desktop search market in January 2016 with 63.88 percent of the market share and its closest competition being Microsoft Sites at 21.1 percent (Lella, 2016). However, these statistics were a result Microsoft and Yahoo spending millions of dollars to expand globally. According to Yahoo Finance (2015), Yahoo spent around $223 million in the 3rd quarter of 2015 on traffic acquisition in an effort to drive more traffic to its web portal, this was equivalent to four times what was spent the year prior. Additionally, Microsoft’s Bing received a big boost from Microsoft’s Windows 10 operating system (Thomas,
As the umbrella company, Alphabet Inc., through its subsidiaries, provides online advertising services, performance and brand advertising services globally. Alphabet is broken down into two major efforts. The Google effort focuses on internet products such as, Search, Ads Commerce, Maps, YouTube, Apps, Cloud, Android, Chrome, and Google Play, as well as technical infrastructure and newer efforts, such as Virtual Reality. In addition, Google also sells hardware such as Chromecast, Chromebooks, and Nexus. The Other portion includes the non internet product businesses, such as Access/Google Fiber, Calico, Nest, Verily, GV, Google Capital, X, and other initiatives. ("GOOG - Stock quote for Alphabet Inc - MSN Money," …show more content…
In essence, the company was able to manage its ever growing business ventures as well as better manage and allocate its finances. This transition also helped to ease the minds of shareholders who were becoming uncomfortable with Google’s expansion into areas outside of internet related services. As a result of the reorganization, the only portion of Alphabet Inc. that would be viewed as a monopoly is the internet searching portion of Google. Google Sites led the U.S. explicit core desktop search market in January 2016 with 63.88 percent of the market share and its closest competition being Microsoft Sites at 21.1 percent (Lella, 2016). However, these statistics were a result Microsoft and Yahoo spending millions of dollars to expand globally. According to Yahoo Finance (2015), Yahoo spent around $223 million in the 3rd quarter of 2015 on traffic acquisition in an effort to drive more traffic to its web portal, this was equivalent to four times what was spent the year prior. Additionally, Microsoft’s Bing received a big boost from Microsoft’s Windows 10 operating system (Thomas,