20 Aug The ABC’s of the Google Alphabet
“Google is not a conventional company,” Google CEO Larry Page said when the
company went public in 2004. “We do not intend to become one.” What does Page and
the rest of Google do differently? As illustrated by their recent restructure into Alphabet,
Google is a company that is not afraid of taking big gambles. It is constantly trying to
improve itself, trying to avoid getting “old,” and Alphabet is an important step in that
Here are the top 3 things you need to know about Alphabet:
A. The brand name “Google” isn’t going anywhere.
“Alphabet” will soon be the parent company of multiple companies, including
Google. The “classic” Google section of Alphabet will still contain all of your
favorite tools such as Maps, YouTube, Google Search, Gmail, Android, Chrome,
Google+, and Google Ads.
B. Other companies under the Alphabet umbrella.
Products like the self-driving cars and drones (Google X), Nest gadgets, the Loon
Balloon Project, and Google ventures investments will all be different companies.
The same goes for the robotics division, Calico (which researches and fights
aging), Google Glass, and the life science which have developed an incredible
contact lens that will help diabetics monitor their symptoms.
C. Competition breeds innovation.
When you’re the best in the business, who else is there to compete against other
than yourself? With the parent company model each company will have to fight
for Alphabet’s funds. This new restructure will empower and test of the
companies’ ability to cooperate with each other and, ultimately, engage in friendly
competitions. This extra boost of competition could result in even better products.
The CEOs also hope that each company will be inspired to take more risks.
Google’s philosophy is summed up in Page’s recent blog post about Alphabet: “We’ve
long believed that over time companies tend to get comfortable doing the same thing,
just making incremental changes. But in the technology industry, where revolutionary
ideas drive the next big growth areas, you need to be a bit uncomfortable to stay
relevant.” Ideally restructuring the companies under Alphabet will do just that.