Alphabet Inc Case Solution
The search giant Alphabet corporate structure tends to appeal many of the investors. Alphabet seems like a new finance model and innovation management, a formula proach used to incubate the businesses into the larger scale operations. The Alphabet structure is about to help each of its businesses proper and flourish through independence and strong leaders. The broad based growth has benefited the company to greater extenta cross its revenue segments from small categories such as cloud, hardware and Google play app store as well as other “bets” revenues i.e. smaller moonshot businesses of Alphabet. The corporate strategy of the company is acquisition which helps the company in gaining the competitive edge over competitors.
Through buying other companies, Alphabet acquires new technologies, skills, patents and improves its services and products, which in turn allows the company to grow faster with reduced efforts. In addition, Alphabet heavily invests in R&D to wither create new products or improve current products. The company has immensely proven its capabilities in terms of acquisition, mergers and has successfully integrated the businesses into the company (Sparks, 2017 ). Broadly, divestitures, joint ventures, acquisition and investment are core and important elements of the overall corporate strategy of Alphabet.
There is a divisional organizational structure at Alphabet Inc. in which each division has positioned an isolated brand including Access (Fiber, Nest, Calico, Google and others). The individual divisions have flat organizational structures, which in turn provide various benefits such as high level of flexibility, lack of bureaucracy and effective two-way communication between employees and senior management. The organizational structure gives senior leadership and company a greater freedom to explore acquisition and new projects. The merger and acquisition synergy have brought strategic business value to the organization. The synergies have resulted in improved productivity, increased customer satisfaction, boost performance, increased revenues, expanded market share and improved competitive advantage.(Goddard, 2018)..........
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