Presented By:

Aditya Jaiswal
Aditya Raj
Aindrila Bera
 Company’s Overview
• Alphabet Inc. is an American multinational conglomerate
headquartered in Mountain View, California.
• It was created through a corporate restructuring of Google on October
2, 2015
• Became the parent company of Google and several former Google
subsidiaries.
• Larry Page serving as CEO and Sergey Brin as president.
• Alphabet is the world's fifth-largest technology company by revenue,
US$136.82 billion (2018) and one of the world's most valuable
companies.
• Brand recognition and equity
• Focus on continuous innovation
• Financially strong
• International growth
• Leading position in the IT industry
• Diversification
• Growth through acquisitions
• Innovation in AI and cloud
business
• Weak position in the cellphone industry
• Comparatively lagging in clouds
• Privacy and Legal issues
• Dependence on key markets
• Dependence on Ad income
• Competitive threat
• Legal & Regulatory pressures
• High expenses of R&D as well
as marketing and sales
 Domination of the industry
allows it to charge higher rates,
leaving space for the less
popular search engines to
compete in terms of pricing.

Considering search engines don’t

provide physical products but rather Threat of
free searching capabilities and various Competitors:
internet applications, the bargaining High
power of suppliers is low. Search
engines are primarily ran off of Google’s overwhelming market
exclusive algorithms that are share and brand recognition make
developed by the companies own it extremely challenging for new
software programmers and Bargaining entrants to gain a foothold.
Threat of
engineers. Therefore, their primary Power of
New
service is independent of suppliers. Suppliers:
Entrants: Low
Low Porter’s
5
Forces
Strong brand recognition and sense of
The term “Google it” has even become
familiarity leads to loyalty from its
synonymous with “search it”. If
Threat of consumers. However, companies such as
companies want the best ad exposure Bargaining
Substitutes: Facebook, potentially becoming more
possible they know that their best bet is Power of
Low to attractive but competing indirectly.
google. Buyers: Low
Moderate
 Alphabet’s Business Strategy
• 1. Business diversification and introduction of new products and services in a regular manner. This constitutes
the core of Alphabet business strategy (Google business strategy). Starting from search engine business in 1998,
the product portfolio of the company has been consistently expanded. Today Alphabet Inc. offers the widest
ranges of products and services including self-driving cars, indoor and outdoor cameras, learning thermostats, and
smoke alarms and even products to stop mosquitoes in their tracks. First mover advantage is the main Alphabet
(Google) competitive advantage in relation to the majority of these products and services.
• 2. Business acquisitions. Alphabet (Google) business strategy involves rapid growths via acquisitions. As of
December 2016, Alphabet acquired more than 200 companies and 30 acquisitions were made in 2015 and 2016
alone. The efficiency of the internet giant to effectively integrate its corporate culture to new businesses it
acquires is one of the solid sources of Alphabet (Google) competitive advantage.
• 3. Profit maximization through creation of a closed eco-system. Google has created a collection of inter-
connected services and applications. Customers usually enter this ecosystem through using Chrome browser,
watching YouTube videos or using Gmail. In no time, they are prompted to use additional services such as Drive,
Play, Calendar, Blogger and others. A greater range of products a customer uses, the more profit Google earns via
advertising in various formats.
• Moreover, machine learning and Artificial Intelligence (AI) has been focus of the business for the past several
years with direct implications on Alphabet business strategy (Google business strategy).  Introduction of Google
Assistant and its integration into a new family of hardware devices like the Pixel and Google Home in 2016 is a big
step for the company towards enhancing machine learning and AI.
Alphabet’s Competitive Advantage

• Alphabet Inc enjoys a myriad of competitive advantages in it’s primary core

businesses that have allowed them to exceed, thrive and withstand the constant
fluctuations, evolutions and trends that happen in the technology world that has
started to transcend it’s own industry and into other fields like never before.
Dominance in web search, video content sharing, online advertising, mobile OS,
browser usage and many other markets are major hallmarks of Alphabet Inc.’s
flagship business Google. Google is an Internet company that primarily competes
in the web search and online advertising markets. However, the company’s
product portfolio is very diverse and includes both related and unrelated hardware
and software products and services. Google dominates most of the markets it
operates within. Strong and ever growing brand awareness gives the company an
unparalleled market leadership and immense brand leadership allowing it power
over customers, suppliers, and competitors.
Thank You!