Google Diversification into New Products and Services, Threats Faced, Operations, and Focus

Case Analysis: Corporate Strategy for Google
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Corporate Strategy for Google
Google is an excellent technological company well known by almost every age group as the best web access supplier across the globe. In 2015, their CEO declared that Google Inc. would change to Alphabet Inc. The corporate strategy of Alphabet (Google) entails business diversification, differentiation, and penetrating the market to create new products and services. Alphabet is conducting massive business acquisitions to achieve its objectives (Sharma, 2020). Their extensive infrastructure will facilitate the growth of other small purchases, which results in the transitive growth of Google. The decision of investors to bet on Alphabet represents an investment in projects with low success probability but with significant upsides. Alphabet never invested in new enterprises that have the potential to grow or fail.
Alphabet seems to have a clear vision of the direction they want to follow. Google as a tech company has a clear focus of striving for technical invention and living accommodation. Google stipulated that they are more than Tech Company, and Alphabet’s goal is to facilitate business diversification (Hern, 2015). The process highlights the concept of strategic ambidexterity, where a company explores new practices, products, and business patterns while examining the existing ones simultaneously. Alphabet conducts some of Google’s business approaches. For instance, Google follows an adaptable methodology that allows acceptance, improvement, and new technology training. On the flip side, Alphabet is doing the same with their newly acquired enterprises. They apply various tweaks to the method depending on the business and market. Folks can describe the strategies for Alphabet in two main points. First, allow every unit to dispose of the correct approach to design and execution. As sections of the business portfolio develop, the need for multiple systems to strategy and execution might arise. Applying a single method and implementation to numerous situations jeopardizes competitiveness and performance. The second strategy for Alphabet is making it easier to build the required capabilities in each business. A company needs to support different strategic approaches with appropriately differentiated capabilities and culture in multiple business environments.
Google Diversification
The diversification of Google into new products and services was the correct strategic choice. According to porter’s “essential test,” companies can create value if diversification industries are attractive and the entry cost does not capitalize on all profits acquired by an enterprise. Also, the better-off-test stipulates that the new unit must experience a competitive advantage for linking with the corporation or the other way round.
From 2006 to 2014, the primary source of revenue originated from the Google website amounting to 59% to 69% of the total revenue. In contrast, the income for Google Network members’ websites reduced from 2006 to 2014 from 40% of the total revenue to 21% (Statistica, n.d.). The decrease resulted from their activities, diversification, particularly on non-advertising processes. Non-advertising activities revenue increased from 0% of overall revenue in 2004 to 10% in 2014 as the Google Network members’ website revenue reduced. The acquisition of Android in 2005 was a significant project for Google. The process enabled Google to compete and prevent apple from dominating the smartphone and tablet market. The market share of Android from 2011 to 2015 grew from 36% to 78%, indicating the success of Alphabet’s acquisition (Statistica, n.d.). The addition increased the market share of Google while still, the entry cost was low, providing a chance to make money.
The company applied the same case in creating Google’s new web browser, chrome, launched in 2008. ...