Alphabet

Company report, featuring a PESTLE, Porters Five Forces, 5C, MOST, CATWOE and SWOT analysis

Introduction

This study on Alphabet, which is part of our coverage of the world’s largest 10,000 companies, is produced and updated frequently to ensure that the most up-to-date content is available.

Premium members have full access to this study on Alphabet, including the SWOT analysis, PESTLE, 5C analysis, CATWOE, Porters Five Forces, MOST analysis, and a myriad of additional high value sections.

We identify potential opportunities for Alphabet to create new products and/or services, predict future market trends, and explore potential partnerships with other organisations.

Company Description

Alphabet Inc. is a multinational conglomerate headquartered in Mountain View, California, founded in 2015. It is the parent company of Google and several other companies providing Internet-related products and services including advertising technologies, search, cloud computing, software, and hardware. The company serves worldwide markets with its products and services, ranging from consumer to enterprise.

Industry Overview

Alphabet operates in the technology industry, which is estimated to be worth 805.61 billion US Dollars. This industry employs over 6 million people worldwide, with employees located in countries such as the United States, India, China, Japan, South Korea, and the United Kingdom. Alphabet is one of the leading companies in the technology sector, with a focus on developing innovative products and services.

Industry Classification

In terms of formal classification, Platform Executive has tagged Alphabet as a business operating within the Dotcom industry.

1. Introduction
2. Company Description
3. Industry Overview
    3.1 Industry Classification
4. Intellectual Property
5. Major Products and Services
6. Key Competitors
7. Stakeholders
8. Value Proposition
9. Customers and Cohorts
10. Competitive Advantages
11. Market Trends
12. Key Performance Indicators
13. Financials (BETA)
    13.1 Highlights
    13.2. Board members
    13.3 Share Performance
    13.4 Income Statement
14. PESTLE Analysis
15. Potential Products/Services
16. Potential Synergies
17. Porter's Five Forces
18. CATWOE Analysis
19. SWOT Analysis
    19.1 Strengths
    19.2 Weaknesses
    19.3 Opportunities
    19.4 Threats
20. 5C Analysis
21. MOST Analysis
22. Innovation Scorecard
23. Appendices

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Intellectual Property

Some of the Patents granted to, or relevant to the organisation include the following:

Patent Title: SYSTEMS AND METHODS FOR USING EXTERNAL DRIVERS WITHIN A VEHICLE
Patent ID: 10671733
Date: 2020-06-02

Patent Title: METHODS AND SYSTEMS FOR PERSONALIZING PROMOTIONAL OFFERS BASED ON USER INTERACTIONS
Patent ID: 10671730
Date: 2020-06-02

Patent Title: METHODS AND SYSTEMS FOR PRESENTING CONTENT
Patent ID: 10671727
Date: 2020-06-02

Patent Title: AUTOMATICALLY ADJUSTING THE EXPOSURE OF AN IMAGE
Patent ID: 10671723
Date: 2020-06-02

Patent Title: CUSTOMIZABLE DISPLAY DEVICE
Patent ID: 10671720
Date: 2020-06-02

Patent Title: METHODS AND SYSTEMS FOR PROVIDING AUGMENTED REALITY CONTENT
Patent ID: 10671717
Date: 2020-06-02

Patent Title: SYSTEMS AND METHODS FOR AUTOMATICALLY GENERATING AN AUDIO MIX
Patent ID: 10671713
Date: 2020-06-02

Patent Title: METHODS AND SYSTEMS FOR MANAGING MESSAGE DELIVERY
Patent ID: 10671710
Date: 2020-06-02

Patent Title: METHODS AND SYSTEMS FOR PROVIDING USER-SPECIFIC CONTENT
Patent ID: 10671707
Date: 2020-06-02

Patent Title: METHOD

Major Products & Services

The main products and/or services commercialised by this business include the following:

Google: Search engine, Google Ads, Google Cloud Platform, Google Maps, Gmail, Google Drive, YouTube, Android, Chrome.
Nest: Smart home products and services.
Waymo: Autonomous vehicle technology.
Verily: Life sciences research and development.
Calico: Health and wellness research and development.
CapitalG: Venture capital and growth equity investments.
Google Fiber: High-speed internet service.
Google Ventures: Early-stage venture capital investments.
Google X: Research and development of world-changing technologies.
Google Research: Research and development of new technologies for Google products.

Key Competitors

We have identified the following organisations as being key competitors:

Apple
Microsoft
Amazon
Facebook
Oracle
IBM
Tencent
SAP
Intel
Baidu

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Key Stakeholders

Stakeholders are individuals or groups who have an interest in a business and/or are affected by its actions.

These stakeholders can have different requirements and expectations from the business, which must be taken into account when making decisions.

By understanding their stakeholders’ requirements, a business can make informed decisions that benefit all involved.

Below is the list of internal and external stakeholders we have identified for this business:

1. Google:Google is Alphabet’s primary business, and its key stakeholders include its customers, advertisers, and employees.

2. Alphabet’s subsidiaries: Alphabet owns numerous subsidiaries, such as YouTube, Waymo, Verily, and more. The stakeholders for these companies include their customers, employees, and shareholders.

3. Investors: Investors in Alphabet have a financial interest in the success of the company.

4. Governments: Governments have an interest in Alphabet’s operations and business practices, including its use of data and its privacy practices.

5. Communities: Alphabet’s operations in communities around the world can impact local businesses, workers, and the environment.

Value Proposition

A value proposition explains the unique value and/or benefits that an organisation provides to its customers, partners, stakeholders and the overall market. It outlines what makes a company like Alphabet different from its competitors, along with what it can offer that key competitors cannot.

A corporate value proposition can be used with the competitive advantages section of this report in order to better understand Alphabet and its position within the marketplace.

Inc The value proposition for Alphabet Inc. is to provide access to the world's information and to help people find what they're looking for.

Competitive Advantages

Competitive advantages are unique attributes, strategies, resources, or capabilities that allow an organisation to outperform its competitors and achieve superior market position and profitability.

Competitive advantages for the business include the following:

Superior Financial Strength: Alphabet has one of the strongest balance sheets in the world, with over $135 billion in cash and investments at the end of the first quarter in 2020. This gives the company the flexibility to invest in new technologies and acquisitions, and provides a financial cushion to weather any economic downturns.

Diversified Portfolio: Alphabet has a diversified portfolio of businesses, including Google, YouTube, Waymo, Verily, Nest, and many more. This allows Alphabet to benefit from the growth of a range of different industries, and helps to ensure that the company is not overly reliant on any one sector.

Innovative Technology: Alphabet has a strong track record of developing innovative and disruptive technologies, such as Google’s search engine and AI-driven products, as well as Waymo’s self-driving cars. This enables the company to stay ahead of the competition and continue to drive innovation.

Experienced Leadership: Alphabet is led by a strong management team with decades of experience in the technology industry. This allows the company to make sound decisions and leverage its resources effectively.

Network Effects: Alphabet’s products benefit from network effects, which allow them to become more valuable as more people use them. This includes products such as Google’s search engine, which become more useful as more people use it and add content to it.

Customers & Cohorts

As part of this competitive intelligence study, we have identified the main customers of the organisation.

These include the following cohorts:

Businesses
Consumers
Education Institutions
Government Agencies
Non-profits
Resellers
Developers

Market Trends

Market trends can impact an organisation by influencing consumer behavior, altering supply and demand dynamics, and affecting the organisation's ability to remain competitive in the market.

As part of this study, we have identified a number of potential short-term to medium-term trends that could impact the organisation. These include the following:

Increased Competition: As technology continues to evolve, Alphabet is likely to face increased competition. Companies such as Facebook, Amazon and Microsoft have already made significant investments in AI, cloud computing and other cutting-edge technologies that could threaten Alphabet's market share.

Data Privacy Regulation: With increasing scrutiny on how companies handle user data, Alphabet could face pressure to adapt new privacy regulations. This could result in higher costs or changes to its services that could impact its financial performance.

Changing Consumer Preferences: As consumer preferences continue to change, Alphabet will need to keep up with the latest trends in order to stay competitive. This could involve investing in new products, services or features to remain relevant in the market.

Growing Demand for Cloud Computing: With increasing demand for cloud computing services, Alphabet's Google Cloud Platform could experience a surge in demand. This could provide an opportunity for Alphabet to tap into a new source of revenue but also will require investments in order to remain competitive.

Key Performance Indicators

Below is a list of KPI's that we have identified as being strategically relevant to this organisation:

Financials (BETA)

The key financials for Alphabet include income statements, which can be found in their annual reports. These financial statements provide information on the organisation's financial performance and health, including revenue, expenses, and profits. This information, along with other indicators are used by investors, analysts and other stakeholders to evaluate the company's performance and future prospects.

Where a financial does not match, we have included those of the parent company (if a listed entity). If the financials are missing please contact us and we will prioritise the update.

Key Personnel

Income Statement

[eod_financials target="GOOG.US" id="10329343" preset="Income Statement" years="2018-2023"]

Highlights

Top-level corporate stats and financial highlights for the listed entity, include:

Share Performance

Below is the current (EOD) share performance for the company, or its listed parent:

Potential Products/Services

As part of this study we have attempted to prognosticate potential products and/or services this organisation could develop in the short to medium-term.

Cloud Storage: Alphabet could create a cloud storage solution that would allow users to store and access data from any device.

AI-Powered Apps: Alphabet could develop AI-powered apps, such as virtual assistants, that could help users with tasks and provide them with personalised recommendations.

Autonomous Vehicle Platform: Alphabet could develop an autonomous vehicle platform that would allow users to safely and securely take rides from one place to another.

Augmented Reality/Virtual Reality: Alphabet could create an augmented reality/virtual reality platform that would allow users to explore and interact with content in a virtual environment.

Smart Home Solutions: Alphabet could develop smart home solutions that would allow users to control lights, temperature, and other aspects of their home with voice commands or a mobile device.

Cybersecurity Solutions: Alphabet could create cybersecurity solutions that would help users protect their data and devices from cyber threats.

Smart City Solutions: Alphabet could design smart city solutions that would help cities become more efficient and sustainable.

Potential Synergies

Using our product and portfolio-matching algorithm, we have determined that the following organisations have potential synergies with the company:

1. Amazon
2. Microsoft
3. IBM
4. Oracle
5. Apple
6. Salesforce
7. Uber
8. Lyft
9. Airbnb
10. Snapchat

Porter's Five Forces

Created by Harvard Business School Professor Michael Porter in 1979, Porter's Five Forces model is designed to help analyse the particular attractiveness of an industry; evaluate investment options; and better assess the competitive environment.

The five forces are as follows:

Competitive rivalry
Supplier power
Buyer power
Threat of substitution
Threat of new entries

The Porters 5 forces for Alphabet are:

1. Supplier power: LOW

2. Buyer power: HIGH

3. Competitive rivalry: HIGH

4. Threat of new entrants: LOW

5. Threat of substitutes: LOW

Alphabet scores HIGHLY in relation to supplier power and competitive rivalry, and MODERATELY in relation to buyer power and the threat of new entrants. However, the company scores relatively POORLY in relation to the threat of substitutes.

PESTLE Analysis

This PESTLE analysis is a strategic planning tool that assesses key external factors affecting the organisation, including the following:

Political
Economic
Social
Technological
Legal
Environmental

Each of these factors is analysed to determine their impact on the organisations strategy, objectives, and operations.

By utilising a PESTLE analysis, the organisation can make better decisions and develop strategies to address potential risks and opportunities.

CATWOE Analysis

The CATWOE analysis is used to investigate each stakeholders perspectives in order to enable the business to make informed decisions.

The CATWOE analysis is a problem-solving tool consisting of six elements:

Customers
Actors
Transformation process
World view
Owners
Environmental constraints

We view the CATWOE as being most useful when used in conjunction with other problem-solving tools such as a SWOT analysis.

Customers: Alphabet’s customers are primarily businesses and consumers. Businesses use Alphabet’s products and services to optimize their operations, such as Google Ads and Google Cloud. Consumers use Alphabet’s products and services to find information, communicate with others, and access entertainment.

Actors: The key actors involved in Alphabet’s operations are its employees, investors, and partners. Employees are responsible for developing, implementing, and managing the products and services that Alphabet offers. Investors provide the capital needed for Alphabet to operate, while partners provide additional services that complement Alphabet’s offerings.

Transformation process: Alphabet’s transformation process is centered around the development and delivery of products and services that are tailored to meet specific customer needs. This process involves research, development, testing, and implementation of new products and services. Additionally, Alphabet works to ensure its products and services are continuously enhanced and updated to meet customer needs.

World view: Alphabet’s world view is focused on empowering individuals and businesses to use technology to solve problems and improve their lives. Alphabet believes that technology should be accessible and affordable for everyone and should be used to create a better world.

Owners: Alphabet is owned by its parent company, Google, and its shareholders. Google has the majority stake in Alphabet, with other shareholders owning a small portion of the company.

Environmental constraints: Alphabet is subject to a variety of environmental constraints, including legal and regulatory requirements, competitive pressures, and economic conditions. Additionally, Alphabet must comply with data privacy regulations in the countries in which it operates. Additionally, Alphabet must stay abreast of changing consumer tastes and preferences in order to remain competitive.

SWOT Analysis

This SWOT analysis is a strategic planning tool used to assess the strengths, weaknesses, opportunities and threats of the Alphabet business.

When creating this SWOT the team at Platform Executive have taken into consideration the corporate strategy; brand; key financials; the competitive landscape; along with the products and/or services offered.

To offer increased context for future innovation and product development we also consider the historical context for the business and industry; and perceived direction of travel.

Upon researching the company, we have uncovered a number of strategic and operational strengths, weaknesses, opportunities and threats.

Strengths

Below is a list of the strengths we have identified for the business:

1. Google Search is the most widely used search engine in the world, with a market share of over 80%.

2. Google Search is highly accurate and relevant, due to its use of advanced algorithms and data from billions of searches.

3. Google Search is fast and easy to use, with a simple interface and powerful features like search suggestions and autocomplete.

4. Google Search is constantly improving, with regular updates and new features being added to make it even more useful for users.

Opportunities

Below is a list of opportunities we have identified for the business:

1. Leverage Google’s artificial intelligence (AI) capabilities to create new products and services, such as voice assistants, machine learning-based search, and cloud-based analytics. This will enable Alphabet to better capitalise on the potential of the Internet of Things, big data, and the connected home.

2. Increase investment in Alphabet’s core business of search and advertising. Google has the largest share of the global search market and is one of the most powerful brands in the world. Investing in its core business will drive future growth.

3. Expand into new markets and geographies. Alphabet has a presence in over 100 countries, but there is significant potential to expand into new markets and territories. This would provide a new source of revenue and could help to diversify Alphabet’s business.

4. Invest in research and development (R&D) to develop new products and services. Alphabet has invested heavily in R&D, with its total R&D spend in the last three years totalling over $30 billion. Investing in R&D can help Alphabet stay ahead of the competition and create new products and services.

Weaknesses

Below is a list of the weaknesses we have identified for the business:

1. Lack of focus: Alphabet is a conglomerate with dozens of subsidiaries, each with its own interests and goals. This can make it difficult for the company to maintain a cohesive strategy and focus on its core businesses.

2. Over-reliance on Google: While Google is by far the most successful subsidiary of Alphabet, it is not the only one. However, the vast majority of Alphabet's revenue and profits come from Google. This over-reliance leaves Alphabet vulnerable to any potential problems at Google.

3. Slow to adapt: Alphabet has been slow to adapt to changes in the tech industry, particularly in the areas of mobile and social. This has led to its lagging behind competitors such as Facebook and Apple.

4. Complex structure: Alphabet's complex structure, with its many subsidiaries and holding companies, can be confusing and difficult to understand. This can make it difficult for investors and analysts to assess the company's true value.

Threats

Below is a list of the threats we have identified for the business:

1. Increased Competition: Alphabet (Google) faces intense competition from other tech giants such as Facebook, Amazon, Apple, and Microsoft. This competition can lead to a decrease in market share, loss of customers, and decreased profits.

2. Security Breach: Alphabet (Google) stores a significant amount of user data, which can be vulnerable to security breaches. If Alphabet (Google) experiences a security breach, it could cause a significant financial loss and reputational damage.

3. Government Regulation: Alphabet (Google) is subject to numerous regulations from governments around the world. Any changes in regulation can lead to increased costs and decreased profits.

4. Technology Change: As technology advances, Alphabet (Google) is at risk of being left behind. If Alphabet (Google) fails to innovate and keep up with the latest technology trends, it could lead to a decrease in market share and a decrease in profits.

5C Analysis

The 5C Analysis is a marketing framework that can be used to provide insight into the key drivers of success, as well as the risk exposure to various environmental factors.

This (concise) 5C analysis examines the external and internal environment for Alphabet. It includes analysing the company's customers, competitors, collaborators, context, and capabilities. We have produced this short analysis to identify potential opportunities and threats to Alphabet, as well as areas where the company needs to improve its operations or strategy.

Company: Alphabet is a multinational technology company that serves as the parent company for numerous tech businesses and products, such as Google, YouTube, and Android. It is headquartered in Mountain View, California and employs over 100,000 people.

Collaborators: Alphabet has a number of key collaborators, including Google, YouTube, Android, and other tech companies. In addition, Alphabet works with a variety of outside partners, such as advertising networks, content providers, and device manufacturers.

Customers: Alphabet’s customers are its users. These users include everyone who uses any of Alphabet’s products or services, such as Google search, YouTube, and Android.

Competitors: Alphabet has a number of competitors, including Apple, Microsoft, Facebook, and Amazon.

Content: Alphabet’s content includes the content that is provided by its various products and services. This includes the content on YouTube, Google search results, and Android apps. In addition, Alphabet provides content through its advertising networks and content partnerships.

MOST Analysis

The MOST analysis framework is commonly used to identify an organisation's strategic goals, assess its strengths and weaknesses, and develop a plan to achieve its objectives. This analysis helps organisations to focus on what they want to achieve and how to achieve it, while also identifying potential roadblocks or obstacles that may arise along the way.

Mission
Objectives
Strategy
Tactics

We have created this analysis from a 3rd person perspective.

Innovation Scorecard

As part of our research and analysis activity, the team at Platform Executive assesses and then benchmarks businesses and the industry verticals in which they operate using a proprietary scoring mechanism.

First, we allocate a score of A-E for the industry vertical, gauged on the key organisations operating within the space; and then score the individual business using a 1-5 score.

A score of D-E within an industry means that it is potentially ripe to be disrupted by a new entrant into the marketplace; and/or vulnerable to technological change.

Likewise, a high score of 4-5 for the company in question indicates that in the view of the analysis team it lags behind notable businesses in terms of innovation and product pipeline.

Below is a guide to each score:

Industry score:

A	The industry is amongst the most innovative; with the leading players all driving the sector forward. Example industry: PaaS
B	The industry and its leading players have a good track record of innovation; and can quickly react to change. Example industry: Pharmaceutical
C	Companies operating within the sector have adequate levels of innovation; and engage in R&D activities when appropriate. Example industry: FMCG
D	Businesses operating in the industry do not invest enough time and resource into innovation. The sector is stagnant and a good candidate for disruption. Example industry: Retail Banking
E	The major players in the sector seem to lack suitable product development roadmaps; and as a result the sector is highly vulnerable to industry change. Example industry: Publishing

Company score:

1	The business is amongst the leading players in terms innovation and product pipeline. This will fulfil and reinforce the operations of the business in the medium to long-term.
2	The business has a good track record of innovation, in terms of its products and/or its business model. It is therefore more likely to be able to react and adapt to any changes to the industry.
3	The business is deemed to have an adequate innovation plan, build on research and development and sustainability where appropriate. The business has a product development strategy.
4	The business needs to invest more resource and/or intellectual capital in product development, pipelines and/or its business model. The business is at risk of stagnation.
5	The business seems to lack a suitable product development roadmap; and as a result is vulnerable to any notable industry change and/or new entrants in the marketplace.

The team at Platform Executive has judged Alphabet as having an innovation score of B3.

Appendices

The appendices section of this report contains supplementary information that the team at Platform Executive deems helpful in providing a more comprehensive understanding of the report's contents.

This information is not considered an essential part of the study but serves as a useful supplement to the main text.

Methodology

This study on Alphabet forms part of our series of competitive intelligence reports, which focuses on 10,000 of the largest corporates.

The information and data included are updated on a timely schedule to ensure that our Premium members receive the most up to date information .

The report is based on information and learning from the following sources:

Corporate websites
Proprietary research databases
SEC Filings
Corporate press releases
News articles
Financial data API's
Product-matching algorithm

Further Information

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Disclaimer

Reproduction of the content produced in this report is prohibited without the prior permission of the publisher, Platform Executive Pty Ltd.

The facts of this report have been gathered in good faith from both primary and secondary sources. It is believed to be correct at the time of publication, but cannot be guaranteed. As such Platform Executive can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Changelog

Premium members: To request a priority update to this report, please contact us. Our standard turnaround time is normally 48 hours.

The changelog for this report can be found below, complete with the next scheduled update:

v1.1: Initial load of report
Date: 1st March 2023

Key Financials added (BETA)
Date: 17th March 2023

Next scheduled update: 29th May 2023

Industry Keywords

Related keywords:

google Investing Search Engine technology

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