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Alphabet Inc.
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== Operations == Working from their dorm rooms two Stanford University students, Sergey Brin and Larry page, built a search engine called Backrub that used links to determine the importance of individual pages on the World Wide Web. It ranked web pages better than any of its competitors and so within a few years managed to outperform the competition. In August 1998, Sun co-founder Andy Bechtolsheim wrote Larry and Sergey a check for $100,000, and Google Inc. was officially born. With this investment, the newly incorporated team made the upgrade from the dorms to their first office. === Google === Google is the core business of Alphabet and accounts for the majority of its revenue. Google's products and services include: * Google Search - most well known for the search engine, income is generated through the use of advertisements that are displayed when the user makes relevant searches. – prices can vary for advertisers depending on the industry that is being advertised, for example a legal client will be more profitable for a firm than someone looking to buy fitness equipment so the cost per click will vary drastically. * Youtube – A video sharing site that is also one of alphabets most valuable assets. Again revenue is generated through the use of advertisements in a similar way to the Google search however instead short video adverts are played before/during a video. * Gmail * Google Workspace * Google Cloud is a state-of-the-art cloud computing platform that provides a wide range of services, such as virtual machines for flexible computing power, scalable storage solutions to securely manage data at any scale, AI and ML applications to drive data-driven decision-making and innovation, and data analytics tools for extracting valuable insights. This comprehensive suite of offerings empowers businesses to enhance efficiency, streamline operations, and achieve secure and scalable growth in the digital landscape. – prices vary depending on the features the customer is using however are generally in the range of about $10 per user per month * Android – A mobile/tablet operating system that currently controls 70% of the global market share in the mobile OS market. Revenue is generated through android apps and services which introduce users into the google ecosystem. === Other Bets === Other Bets is a group of businesses that are still in the early stages of development. These businesses include: Calico (longevity research) Verily (life sciences) Waymo (self-driving cars) Wing (drone delivery) CapitalG (venture capital arm) GV (venture capital arm) === Online advertising === Alphabet generates the majority of its revenue from online advertising. The company's advertising products and services allow businesses to reach a large audience of potential customers. === Cloud computing: === Alphabet's Google Cloud Platform is a leading cloud computing platform that offers a wide range of services to businesses of all sizes. === Hardware: === Alphabet designs and manufactures a variety of hardware products, including the Pixel phone, the Nest smart home products, and the Fitbit fitness tracker. === Research and development: === Alphabet invests heavily in research and development. The company's research teams are working on a variety of projects, including artificial intelligence, self-driving cars, and renewable energy. === Total Addressable Market: === Because Alphabet participates in a diverse range of markets, the total addressable market sums up to be more than $650 billion. Google’s digital marketing ~$500 billion, Waymo’s autonomous vehicles ~$120 billion, Calico genetics ~$7.4 billion, and many more companies under Alphabet. === Serviceable Available Market: === The serviceable available market is more than $475 billion. Google is the market leader for search engines and shares 85% of the market, $425 billion. Waymo also adds another $50 billion in autonomous vehicles, having only Tesla as a major competitor, and other smaller autonomous vehicle companies. === Serviceable Obtainable Market: === Google is already the market leader for search engines and the serviceable obtainable market is $425 billion. Waymo’s currently estimated valuation is $30 billion, Calico $20 billion. This sums up to be an estimate of $456 billion with its biggest 3 companies. === Competitions: === The design of goods and services directly relates Alphabet Inc.’s operations management to the competitive landscape. Products compete against information technologies and online services from other companies. For example, Google Search competes with Microsoft Bing. Also, through Google, Alphabet competes with Apple’s cloud services, consumer electronics, App Store, HomePod, and Siri; Facebook’s social media and digital advertising; eBay’s marketplace advertising; Amazon’s cloud services, Alexa, and consumer electronics; and Samsung’s consumer electronics and Bixby. Other Alphabet competitors include Disney, Netflix, and Sony, which compete with Google’s (and YouTube’s) digital content distribution or video streaming. Moreover, Uber competes with Waymo, which was a self-driving technology project under Google and is now a subsidiary of Alphabet Inc. These competitors affect the technology company’s product design. Thus, the competitive landscape influences this strategic decision area of operations management at Alphabet Inc.
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