Gargantuan is an adjective, simply meaning enormous, and it wouldn’t be surprising to use it when describing business pair Larry Page and Sergey Brin’s company Google. And if you think their online dominance is overwhelming now, it looks like it’s going to get a whole lot larger. As Google itself will be slimmed down, it will keep its best known brands, such as Google Search, Maps and YouTube, but some of the more recent ventures like Google Nest Thermostat, which is a smart device and application that allows you to control your home heating from one place such as your mobile phone, will come under the umbrella company called ‘Alphabet’ incorporation. Alphabet will focus more on experimental innovations. Google Nest also provides similar products for your home including Nest Cam, and Nest Smoke and CO² alarm. The restructuring was announced on August 10th 2015.
The name ‘Alphabet’ was chosen for two reasons, firstly its representation of language, and (Alpha) an alternative (business) term as an investment with a return exceeding the benchmark profit. Part of their business model is to have a strong CEO for each business, with the Google business moguls in service to support them as and when required. The pair will also be handling capital allocation and oversee that “each business is executing well.” This allows them “to keep tremendous focus on extraordinary opportunities inside Google.” A key factor of this being successful is the appointment of Sundar Pichai as Googles CEO, previously responsible for product and engineering. The appointment will free up Larry Page and Sergey Brin for them to continue to scale their aspirations. The pair are confident that Sundar will “always be focussed on innovation, continuing to stretch boundaries.”
Larry Page went on to say “I should add that we are not intending for this to be a big consumer brand with related products, the whole point is that Alphabet companies should have independence and develop their own brands.”
“We are excited about”…
• Getting more ambitious things done.
• Taking the long-term view.
• Empowering great entrepreneurs and companies to flourish.
• Investing at the scale of the opportunities and resources we see.
• Improving the transparency and oversight of what we’re doing.
• Making Google even better through greater focus.
• And hopefully… as a result of all this, improving the lives of as many people as we can.
He finished by saying “Don’t worry, we’re still getting used to the name too!”
In a report from Reuters, vehicle manufacturers BMW are investigating a possible trademark infringement, as they also have a subsidiary called ‘Alphabet’. BMW’s ‘Alphabet’ provide their expertise and management to assist business transportation, including car and vehicle funding.