On Aug 10, 2015, Larry Page, CEO of Google, announced on their official blogspot the creation of a new company, ‘Alphabet’, which is a group of well-renowned companies under one roof.
When announcing the news, Larry Page said that, “This allows us more management scale, as we can run things independently that aren’t very related.”
Although this seems to be a questionable move, the action has been deemed a smart branding strategy. Not only is Alphabet going to be a collection of well-known companies, but they are also going to be a house of great brand names, such as YouTube, Google, and Android, just being a few.
From the beginning of the creation of Google, Larry Page and Co-Founder Sergey announced that they will not be a conventional company. They also claimed that they would be driven to do anything and everything to make the company more exquisite. But did we ever think that they would be going to the extremities of becoming a part of something so big and questionable?
Although Google’s name change might sound a bit over the top, this has been done before. When the company Unilever was created, they took in companies such as Dove, Axe, Lipton and Ben & Jerry’s. Fortune.com writes that “A house of brands strategy makes enormous sense. One notable benefit is that it creates flexibility.” The company can now create new and spin-off brands, sell brands with less potential and address growth opportunities, as needed.
One thing that we do need to keep in the back of our minds though, is that Google has not been wiped clean off the face of the planet. They are now just a part of a bigger, more larger entity. Google will still remain as one of the top search engines in the nation.
What do you think of Alphabet becoming something bigger?