Alphabet inc. competitive strategies

1. UGANDA CHRISTIAN UNIVERSITY
MUKONO
FACULTY OF BUSINESS ADMINISTRATION
BACHELORS OF INTERNATIONAL BUSINESS
PRINCIPLES OF INTERNATIONAL MANAGEMENT
COURSE WORK
LECTURER: DR. AYEBALE DAN
QN.
PICK A GLOBAL COMPANY OF YOUR INTEREST AND ANSWER THE
QUESTION OF HOW THIS COMPANY HAS CONTINUOUSLY DEFENDED ITS
SELF DESPITE THE INTENSE COMPETITION IN ITS INDUSTRY TO BECOME
AN INDUSTRY LEADER?
NAME: REG NO.
• AYEBARE EUNICE S16B41/002
• MUTABAZI TIMOTHY KWIZERA S16B41/089
• OTIM EMMANUEL S16B41/048
 OPIO BRIAN S16B41/021
 RUKUNDO RINAH TURYAHEBWA S16B41/008

2. COMPANY OF INTEREST:
ALPHABET INCOPERATED
• Alphabet Is An American Multinational Technology Company That Deals In Both
Software And Hardware Products.
It Is Based In Silicon Valley California, U.S.A. It’s Currently The Parent Company Of A
Restructured Google Inc.
It’s The World’s Second Largest Internet Company By Revenue Overseeing All Google
And Android Works. It Is Considered One Of The World’s Greatest Subsidiary Company
With More Than 26 Subsidiaries Including Google, Nest Lab, Calico…
One Of The World’s Greatest Economist And Investor Eric Schmidt Said “ALPHABET
Internet Is An Association With The Greatest Growth Levels, Innovators’ Chances And Is
Yet To Climax The World’s Technology Market.

3. ORIGIN
BACKGROUND
STRUCTURE
STOCKS AND REVENUE
CASE STUDY
R&Ds
COMPETITORS
INVESTIMENTS AND ACQUISITIONS

4. THE RESTRUCTURING
AS MUCH AS ALPHABET INC. IS WIDE IT WAS ACTUALLY CREATED AS A SUBSIDIARY
BY GOOGLE INC. BUT THEN LATER A TWO-STEP SWITCH WAS MADE THAT FINALLY
QUALIFIED ALPHABET INC. TO BE ITS PARENT COMPANY BY THE YEAR 2010
STRUCTURE

6. COMPETITIVE ADVERTS
• ON LINE ADVERTISING FOR ORGANIZATIONS, INSTITUTIONS, INDIVIDUALS AND OTHER
BUSINESSES.
CONTINUOUS INNOVATIONS
• ALPHABET HAS BEEN INVESTING IN THE CREATION OF SELF-DRIVING CARS
• BETTER AND MORE ATTRACTIVE SMART PHONES,
• SOCIAL MEDIA PLATFORMS
• SMART APPLICATIONS,
HIGH QUALITY CUSTOMER CARE
• THE ART OF MAKING THE CUSTOMER THE FIRST PRIORITY,
• MORE OF THE WORK IS DONE BY THEM SELVES GIVING THE CUSTOMERS HIGH ADVANTAGE
OVER OTHERS
HIGH LEVELS OF AVAILABILITY
• ALWAYS FIRST TO RESPOND IN CASE OF SEARCH
• ALWAYS PROVIDING THE CUSTOMER WITH MORE OPTIONS IN THE RESEARCH FIELD
EXCELLENT AND COMPETITIVE PRODUCTS
• ALL PRODUCTS ARE CUSTOMER FRIENDLY CONSIDERING ALL LEVELS OF CUSTOMERS
• STRONG AND DURABLE PHONES LIKE THE GOOGLE NEXUS

7. Acquisitions
• Through the use of acquisitions Google Inc (now Alphabet)
has managed to keep reinvent it’s self and standout from its
competitors.
• One such example includes Keyhole Inc. This was software
development company labs founded in 2001 and
specializing in geospatial data visualization applications.
• The company was purchased by Google in 2004 for
$35million and it’s application Earth Viewer, became the
Google Earth application in 2005, it was highly successful.
• Aspects of it’s core technology still survive in Google Maps
and Google Mobile today.

8. Human Recourse Management Strategies.
 Value in their work; Google’s motto ‘‘Don’t be evil’’ and their mission statement ‘‘to organize the
world’s information and make it universally accessible’’ analysis speculate might a contributing fact
into why 73% (according to Pay Scale) Google employees find their work worth while Many Google
employees believe that their work makes a difference and makes the world a better place.
 Discipline in innovation; Google has ‘innovation reviews’ , where department heads, top leadership
and executives meet together to focus their attention and resources on promising ideas early on. This
helps better management of resources and it’s enables company to come up with more innovative and
current tech that keeps up with the ever changing market demand.
 Drive to learn and Talent; In Google they no longer ask for your degree or education levels, what they
focus on is the employees drive to learn and accomplish tasks. To back this up, Google’s own
engineering teams have collected research and crunched the data and they found that the college degree
and test scores to have no correlation to employees performances with the exception of newly graduates
where they found slight correlation. The only case where they ask for your test scores is if you have a
few years in schooling. Which is why Google teams currently consist of 14% non-college degree
holders that are actively contributing to innovations.

9. CONT.
Retraining managers; in the Eight Habits of Highly Effective Managers. The following
lessons where conducted in sessions, workshops and seminars, the results of the lessons
showed their effectiveness when 75% of the worst teams (in terms of performance) were
showing improvements lessons where outlined;
Be a good coach
Empower your team and don’t micromanage
Express interest in employees’ wellbeing and success
Be productive and results oriented
Be a good communicator and listen to your team
Help your employees with career development
Have a clear vision and strategy for the team

10. CONT.
with less than a year’s experience with
$93,000 salary on average. It should also be
noted that Google intentional pays some of it’s
employees with the same role drastically
varying salaries. This done to reduce labor turn
over and to retain hard working from leaving
Google for other companies.

11. 11/23/2017 6/11/2018 12/28/2018 7/16/2019 2/1/2020 8/19/2020 3/7/2021 9/23/2021
24.75B
26.06B
22.45B
21.50B
20.26B
21.33B
18.68B
17.73B
17.26B
24.75B, 42825
26.06B, 42716
22.45B, 42643
21.50B, 42551
20.26B, 42460
21.33B, 42369
18.68B, 42277
17.73B, 42185
17.26B, 42094

12. REVENUE AND STOCKS
• As you have seen, Alphabets revenue has staidly increased from $21.329Bil in 2015 December to $26.06Bil
in 2016 December. This increase of revenues year over year, in 2015 were 18% and in 2016 had increased
22%.
• During the 2016 3rd quarter and the 4th quarter in 2016 was 16%. Alphabet’s performances in these financial
quarters and year on year comparisons where majorly due to online ads on the mobile search engine and
YouTube.
• Alphabet’s subsidiary Google had a successful run from it’s non-ad revenue; which include the cloud
computing business, the new Nexus Pixel smart phones and the Google Play store. Which grew 49.4% to be
$3.10Bil in the quarter.
• This in turn has helped Alphabet’s GOOGL Class A stocks to reach a value of $10003.30 on Jun 5th 2017 on
the NASDAQ stock exchange. By diversifying, increasing search engine market share to 61.6% and gaining
exponential revenue, investors are confident in Alphabets growth as company which has allowed it’s stock
to increase by 25%.
• Alphabet now briefly joins an exclusive club of companies with stock price in the Quadruple digits.

13. Stocks And The Industry
And on June 5th 2017 on the NASDAQ stock exchange, Alphabet’s GOOGL stocks hit
$1003 for the first time in history (including Google Inc history) allowing it to briefly
join an exclusive club of companies with stocks worth $1003, before dropping down to
$974.86 on 21st June 2017.
The value of this indicator showed that Alphabet’s growth as a company even though it
had quickly spiked and slumped with small margin shows that due to being tech giant
with a huge market capital that is more diverse and spread out than it’s competitors,
investors show little if no wavering in Alphabet’s abilities by continuously investing in
their stocks.
However, on 27th June, 2017 alphabet stocks slid 2.5% to $948.09, which came as a result
of the E.U. fine, even though Alphabet the parent company has $92 billion in available
cash .
Being a global company of internet facing these challenges makes it more of an
exemplary company as even through this Alphabet has always remained an industry
leader as we see the stock for other U.S. industry giants like Amazon fall 1.7% and
Facebook fall 2% with the market being nervous of when the E.U. will turn to the other
giants.

15. GOOGLE PRODUCTS
• The Google “Nexus Pixel Xl”. This new smart phone has been rated by critics to have better
battery life and is much lighter compared to other smart phone brands like Iphone.
• Google Maps helps you to find locations of restaurants, hotels, business offices and even family
members.
• YouTube helps users create everlasting videos and opens the doors for users to grow a global
audience, even if they are speaking only one language.

17. PRESSURE GROUPS
• Government; most governments blame Google
for exposing their secrets and also play a big role
in the escalation of strikes.
• Parents; many parents accuse Google for
spoiling their children, morally, this is because
most of their search results are not filtered.
• Trade Unions; Many trade unions in different
countries have complaints of how Google favors
some of the big companies.

18. COMPETITORS

19. AMAZON
 Amazon is one of the
most powerful search
engine.
 It should be noted that
when you are to search
for a product on Amazon
you see their search
engine function.
 It should also be noted
that Amazon blocked it's
users from accessing.
Google and Google did
the same thing too.

20. APPLE
 It is obviously among Google
biggest competitors in regard
to the smartphone market.
 Itunes and Apple store are
also an indirect Google Play
store.

21. ALIBABA
 Is a Chinese commerce giant
just starting to cause trouble
internationally.
 Alibaba’s initial public offering
was higher than Google,
FaceBook and Twitter combined.
 It has it’s own smart phone
operating system to rival
Google's Android.

22. VERIZON
 This is a leading wireless
communication in U.S.A.
and it has made a lot of
acquisitions in recent years.
 Verizon and Google have
worked hand in hand to
push Apple away from the
top spot in the smart phone
market.

23. BAIDU
 This is a Chinese
search engine that is
popular in the China
market.
 It’s music service
alone has over 150
active users each
month.


24. MICROSOFT
 Microsoft is in direct
competition with Google
via their own search
engine called “Bing”.

25. YAHOO!
 Yahoo has long been one of
Google’s biggest competitors
in the search engine function
and even today they are still
in competition.
 They also compete in the
email address market.

26. Case Study: Google Vs China
• To enter the Chinese search engine market, a Chinese language interface
was developed in 2005 and hired former Microsoft executive Kai-Fu Lee to
head it’s operations. And Google China established in January 2006 with it
having the URL www.google.cn rather than www.google.com giving the
ability to penetrate the market.
• March 2009, Chinese security forces were filmed beating up Tibetans and
China restricted access to YouTube and also access to Google’s other
online services are denied from users arbitrarily.
• And on September 4th 2009, to make matters worse Mr. Kai-Fu Lee left
Google china to startup his own venture fund, during the crisis of Google’s
decreasing market share to local rivals Baidu and www.Soso.com, as well
as Chinese governments’ recent censoring policy.
• In 2010 , according to Analysis International, Google China’s market share
of 29% dropped to 5% in 2012 and further declined to 1.7% in 2013.

27. Google’s Solutions
the world’s biggest internet market and what kind of agreements it can come to without hurting its public
image.
Also determined Google users can access the Google products and google play through the use of VPN
which helps to bypass the Country’s firewall, but still limited access when it comes to in-app purchases or
buying apps.
And in February early this year, Google was reported to be in the middle of talks with Chinese internet and
online gaming giant NetEase, which could lead to a possible joint venture between the two firms and give
google the opportunity to tap into the world’s largest smartphone market through the its app developer
market from which it has been absent in from.

28. ANY QUESTIONS

29. THANK YOU FOR LISTENING