A Strategic Plan For Alphabet Inc. | Report

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RUNNING HEAD: A STRATEGIC PLAN FOR ALPHABET INC
A STRATEGIC PLAN FOR ALPHABET INC
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1A STRATEGIC PLAN FOR ALPHABET INC
Table of Contents
Introduction................................................................................................................................2
Mission and objectives...............................................................................................................2
Environmental scanning.............................................................................................................2
SWOT analysis.......................................................................................................................2
Porter’s five forces model......................................................................................................3
Competitive advantage...............................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

2A STRATEGIC PLAN FOR ALPHABET INC
Introduction
In 2015, by creating a holding company named Alphabet Inc, a new organizational
structure was unveiled by Google. Larry Page, Sergey Brin and Ruth Porat. Alphabet Inc has
the responsibility to manage overall oversight for the disparate collection of Google’s
business. In this report, strategic planning for Alphabet Inc will be done by following five
steps.
Mission and objectives
The vision of Alphabet Inc is to develop a “collection of companies” (Dess et al.
2019). The goal of this organization is to run the business of Google independently. The
mission of Alphabet Inc is to foster the individuality of each and every business, which are
owned by Google. The mission of Alphabet Inc is similar to the mission of Google. The
mission of this organization is to organize information about the world and prepare
universally satisfactory and valuable information (Dess et al. 2019). Larry Page and Sergey
Brin referred that the objectives of this organization are to prioritize innovation, collaboration
and develop the present position of the company (Dess et al. 2019).
Environmental scanning
The environmental scanning of strategic planning includes internal analysis and
external analysis. For the internal analysis part, a SWOT analysis will be done and for the
external analysis part, Porter’s five forces model will be used.
SWOT analysis
For the internal analysis of Alphabet Inc, a SWOT analysis will be done which will
identify the strengths, weaknesses, threats, and opportunities of this organization.
The strengths of Alphabet Inc will be discussed in this part. There are several aspects
of this organization which can be identified as strengths of Alphabet Inc which are brand
recognition, brand equity, continuous innovation procedure, economically strong, global
growth, and leading organization in IT industry (Wirtz, 2019).
The weaknesses of Alphabet Inc will be identified in this part. Certain aspects of
Alphabet Inc are weaknesses for this company which are its position in the cell phone
industry, privacy issues, lagging position in the cloud industry, leadership challenges, legal

3A STRATEGIC PLAN FOR ALPHABET INC
issues, excessive dependency on key markets and income form the advertisements (Dess et
al. 2019).
The opportunities of Alphabet Inc will be analyzed in this part. The management team
of Alphabet Inc can use its opportunities which are diversification, innovation in the cloud
business, and acquisitions procedure (Ghaffari, Delgosha & Abdolvand, 2014).
There are certain threats for Alphabet Inc which can affect the business of this
organization. Those threats are regulatory pressure, competitive threat, legal pressures,
expensive R&D, expensive marketing and sales procedure (Dess et al. 2019).
Porter’s five forces model
Porter’s five forces model analyse five competitive forces to identify the structure of
the industry and corporate strategy. Five components are bargaining power of suppliers,
bargaining power of suppliers, the threat of substitute products, the threat of new entrants,
and competitive rivalry in the industry (Dobbs, 2014).
Due to several reasons, the bargaining power of suppliers for Alphabet Inc is low. As
the core business model of Alphabet Inc is its search engine. To manage the business of this
organization, there is no need for external suppliers. Engineers of Google are efficient enough
to manage the bargaining power of suppliers.
The bargaining power of customers is moderate for Alphabet Inc. By establishing as a
trustworthy business organization, this organization is successful to generate its popularity.
The customer of this organization is other business organizations, who utilize this platform
for several purposes. Due to the rise of social media, it can be said that the bargaining power
of this organization is moderate.
It can be said that the threats of substitute products for Alphabet Inc are moderate.
This is one of the largest advertising platform and the most effective search engines in this
world. Though there are several business organizations like Bing and Yandex who create
competition for this organization yet it can be said that t is the most popular and most
efficient search engine.
Threats of new entrants for this organization is low because to enter in this industry a
business organization has to manage huge investment, technological infrastructure, and
skilled labor. To manage the business successfully this organization has to recruit the most

4A STRATEGIC PLAN FOR ALPHABET INC
efficient staff and highly-skilled engineers. It will be difficult for new entrants to manage
these factors successfully.
The competitive rivalry in the industry is high for this organization. There are several
business organizations like Amazon, IBM, Apple, and Microsoft who are investing heavily in
the R&D for technical advancement. So it can be said that this organization has to manage an
intense competition.
Competitive advantage
The competitive advantages of Alphabet Inc will be identified in this part. Ability to
implement technological advancements, large portfolio, ability to innovation, skillful
employee, global presence, brand image and reputation, and customer loyalty is the
competitive advantage of Alphabet Inc. By utilizing these competitive advantages, Alphabet
Inc can achieve its business goal. By creating a loyal customer base, this organization can
manage its losses (Rothaermel, 2016).
For the recommendation part, it can be said that the management team of Alphabet
Inc can invest a huge amount for the R&D. It will help the company to innovate new
technological improvements. Research in AI can be beneficial for this organization. To
enhance its presence in the cloud industry, this organization can manage a strategic plan. By
creating a proper leader this organization can manage its various business operations.
The senior executive team of Alphabet Inc announced that ambidexterity will be
fostered by Google (Dulhanty, 2017). It will help the company to explore new practices,
business models, services, products, and modification of the present business model at the
same time. It can be said that the management team of this organization must become an
ambidextrous organization. It will help the company to explore a new business model and
business operation style. To become a successful ambidextrous organization, Alphabet Inc
has to apply various approaches to strategy either concurrently or successively. Besides its
exclusive presence in the software industry, this organization has to enhance its presence in
the hardware industry. To do that this organization has to invest in its R&D and research
constantly for technical innovation. It will help the company to gain competitive advantages.
To evaluate those action of this organization, the management team of this organization has
to monitor, evaluate, and report each and every development. Appropriate analysis of the
development will help the R&D to invent new technology.

5A STRATEGIC PLAN FOR ALPHABET INC
Conclusion
This report can be concluded in this way that the management team of Alphabet Inc
has to invent new technologies, explore and exploit at the same time, and explore various
business model, culture and approach. It will help this company to accomplish its business
goals.

6A STRATEGIC PLAN FOR ALPHABET INC
References
Alphabet. (2016). Alphabet. Retrieved 24 February 2020, from https://abc.xyz/
Dess, G., McNamara, G., Eisner, A., & Lee, S. (2019). Strategic Management [Ebook] (9th
ed., p. 326). New York: McGrow-Hill Education. Retrieved from https://player-
ui.mheducation.com/#/epub/sn_f9df#epubcfi(%2F6%2F8%5Bdata-uuid-
96b95379255c4bd9b7a062b5a29e32da%5D!%2F4%2F22%5Bdata-uuid-
11b97304422d47f7afebb19f6599cb37%5D)
Dobbs, M. E. (2014). Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review.
Dulhanty, A. (2017). Google inc./alphabet inc.: Privacy in the business of personal
information. SAGE Publications: SAGE Business Cases Originals.
Ghaffari, K., Delgosha, M. S., & Abdolvand, N. (2014). Towards cloud computing: a SWOT
analysis on its adoption in SMEs. arXiv preprint arXiv:1405.1932.
Rothaermel, F. T. (2016). Strategic management: concepts (Vol. 2). McGraw-Hill Education.
Wirtz, B. W. (2019). Google/Alphabet Case Study. In Digital Business Models (pp. 207-236).
Springer, Cham.