Google has become Alphabet

We company that we all know as Google is now a collection of separate companies, owned by a new holding company called Alphabet. This move is the biggest thing that Google has done in 11 years.

The change to Alphabet allows more management scale, as things can be run independently. Google is obviously the largest of all the separate companies, and it includes search, advertising, maps, apps, YouTube and Android.

So, why has Google become one of the separate companies housed under Alphabet?

Well, beyond better management and focus, branding might be the explanation for this move.

While most companies believe that a power of a brand will help sell new products, often new products hurt the old ones. And the brand gets messed up along the way. However, Google is no ordinary company. But it understands and tries to apply basic marketing laws.

To try stay true to its brand, Google essentially had two choices.

1. Expand its brand from “organizing the world’s information” to something broader, something along the lines of making the world a better place through innovation.

OR

2. Keep Google focused and true to its brand, but spin off whatever doesn’t fit.

But if you spin off all these random projects, what will connect them all? That’s why the new holding company, Alphabet was created. They needed to make sure this brand is broad enough and reflects their vision of making the world better through bold innovation and projects.

Let’s hope this brand succeeds and hopefully we will benefit from it!

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