Alphabet’s Corporate Strategies: A Study

This essay analyses Alphabet Inc.'s corporate strategies of vertical integration, differentiation, and cost leadership to increase investors, equity, and customer satisfaction. It discusses the company's policies of infrastructure building, innovation, cost leadership, and differentiation, as well as its flat organizational structure and diversification strategies.

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ALPHABET’S CORPORATE STRATEGIES: A STUDY
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ALPHABET’S CORPORATE STRATEGIES: A STUDY
The aim of this essay is to analyse the corporate strategies used by Alphabet Inc. to survive and
thrive globally in the face of the intense business competition that it is facing. Alphabet Inc.’s
corporate strategies are vertical integration, differentiation and cost leadership that help the
company increase their investors and equity with a strong area of customer satisfaction.
Alphabet Inc.’s vertical integration policies include expansion of various designs of computer
systems, operating systems, building and operating their own data centres, integration of internal
operating software, with Google fibre being an outstanding example. Google might utilise Motorola
to get vertically integrated for hardware assistance which would also enable them in acquiring
patents (Herger and McCorriston 2016). In future, Alphabet Inc. is also planning to build a wireless
network, a separate smartphone and also communication cable across the Pacific Ocean floor.
Alphabet Inc. is known for their teams working relentlessly for Innovating new, updated and unique
products and services for the consumers. Viewing Alphabet Inc.’s report on their capital expenditure,
it can be determined that Alphabet Inc. reasonably invests on their infrastructure building activities
than any other Information Technology based conglomerates operating globally, which makes them
hard competitors of other peer companies all over the world. Google is investing solemnly on
“quantum computing technology” in future, emerging as a leading corporate at par with IBM and
Intel (Ledenyov and Ledenyov 2016).
It is pertinent to note that over the years Alphabet Inc. had remained the leading technological
innovators throughout the world, it has helped them to provide the market with high quality products
and boost perceptions among the customers and prospective customers. However, in the recent times
it is seen that the organisation through the usage of the cost leadership strategy is trying to offer the
best quality services or products to the customers and that too at very affordable prices. This in turn
have not only enabled the organisation under discussion here to significantly enhance their customer
base but at the same time to earn a higher amount of profit as well.

ALPHABET’S CORPORATE STRATEGIES: A STUDY
Alphabet Inc. enjoys a greater cost advantage because of its size, scale of operations and output.
Alphabet Inc., especially Google, has taken up policies of providing advertisements in their search
engine, increasing online activities of general public, thereby, accumulating substantial amount of
revenue. Investment mobility in different countries have enabled Alphabet to acquire different
investment advantages throughout the globe. The domain of Alphabet’s generic corporate strategies
lie in differentiation. Alphabet Inc is renowned for its unique products and services that are open to
all, irrespective of any discrimination. In future, Alphabet is seeking for innovative approaches to
Google algorithms to ensure competitive advantage from other search engine competitors such as
Yahoo!
Alphabet Inc has a flat organisational structure that ensures minimum beaurocracy, high
flexibility and effective interpersonal and organisational communication (Daidj 2016). Google Inc
got restructured in 2015 to become Alphabet Inc in an attempt to move beyond search engine
services and include diversification strategies. Each division is positioned with separate brands such
as Google, Nest, Access and Calico. With the role-reversal of Alphabet Inc. becoming the direct
owning Company with Google as it’s subsidiary, a relevant change has been noticed in the corporate
functioning of the company. Investment became easy with an increase in market capitalisation and
cash in hand globally, with proper divisions of earnings resulting in less ambiguity in financial and
managerial processes (Steiber and 2013). On the basis of this, it can be said that the organisation
under discussion here can follow the corporate strategy of expansion in future and thereby look to
expand not only their business operations in the different nations of the world but also in terms of the
products or services that if offers to the customers.
To conclude the respective essay, it can be aptly said that the conglomerate Alphabet Inc has
been successfully running their business globally with greater flexibility, simplification and
minimum beaurocracy with adequate plasticity in the matters of innovation for product and service
development and customer satisfaction.

ALPHABET’S CORPORATE STRATEGIES: A STUDY
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