Analysis of Key Issues Faced by Alphabet Inc. and Suggestions for Resolving Them

INTERNATIONAL
BUSINESS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
ISSUES............................................................................................................................................1
SUGGESTIONS..............................................................................................................................2
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Alphabet Inc. is an American multinational Conglomerate that has headquartered in
Mountain View, California. On 2nd October 2015, it was created from restructuring of Google as
its parent company along with several former Google subsidiaries. The present report would
reflect analysis of key issues along with incorporating relevant international business concepts
and theoretical framework as well. Moreover, it will be applying knowledge to give well-
justified solutions to extracted issues.
ISSUES
It has been articulated that in year 2016, global market share of Google was slipped down
in online advertising by 2%. At that phase, Google was struggling hard to maintain grip on
advertising where different people turned to mobile devices and implication of voice enabled
search (Dolata, 2018). In this aspect in year 2015, it has been extracted that higher than 100
billion monthly searches were through mobile devices. During acquisition of Ad Mob from
Google, it is estimated that Google’s mobile advertising margins to be lower by 30% as
compared to Desktop.
While observing regulation, dominance nature of Google has reflected scrutiny and
criticism as in Europe Google holds 90% of market share of online searches significantly more
than roughly 70% of market share in the US. Apart from this, Google was stuck in European
courts on issues ranging from privacy to taxes which are unpaid. EU has also charged Google for
skewing search outcome in favour of comparison shopping tool of Google. Although, particular
allegation was denied and they made clear the end would have numerous intermediate steps for
being commented as antitrust attorney (Estes, Brotto and Busacca, 2018). Due to these issues, its
10% of yearly revenue incurred as its cost and it even loosen its tight grip from the advertising
sales.
The other issue of Google related to advertising is bad advertisement and content as it
decreased by 1.7 billion bas ads has violated its policies in year 2016. There was promotion of
illegal products along with unrealistic offers and even these could trick people for sharing
personal information and infecting devices with context to harmful software (Munir and et.al.,
2018). Regarding this, Google took help from The Coalition for better ads as this group
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