{"id":44020,"date":"2023-10-20T15:32:51","date_gmt":"2023-10-20T15:32:51","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/spelling-out-why-google-turned-into-alphabet-startupsmart\/"},"modified":"2023-10-20T15:32:51","modified_gmt":"2023-10-20T15:32:51","slug":"spelling-out-why-google-turned-into-alphabet-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/spelling-out-why-google-turned-into-alphabet-startupsmart\/","title":{"rendered":"Spelling out why Google turned into Alphabet – StartupSmart"},"content":{"rendered":"
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There are lessons for Australian entrepreneurs in Google\u2019s big restructuring and rebrand announced on Tuesday, experts say.<\/p>\n

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Google announced the creation of a new holding company<\/a>, Alphabet, which will include Google Inc, Google Ventures and Google Capital as subsidiaries.<\/p>\n

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This will separate the Google search engine business, YouTube and other web companies from the overarching company\u2019s research and investment division, making things clearer for investors.<\/p>\n

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It\u2019s a major restructure for the global search engine giant, with Alphabet now replacing Google Inc on the stock exchange.<\/p>\n

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\u201cWe\u2019ve long believed that over time companies tend to get comfortable doing the same thing, just making incremental changes,\u201d Alphabet CEO Larry Page says in a blog post.<\/p>\n

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\u201cBut in the technology industry, where revolutionary ideas drive the next big growth areas, you need to be a bit uncomfortable to stay relevant.\u201d<\/p>\n

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The tech company formerly known as Google<\/b><\/h2>\n

Professor Tim Mazzarol, the director of the Centre for Entrepreneurial Management and Innovation, says these changes were made for two reasons.<\/p>\n

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\u201cThe first is the need to give the company more managerial structure,\u201d Mazzarol says.<\/p>\n

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\u201cThe separation into separate companies under the overall parent holding company allows for each separate business to have its own leadership and management team.<\/p>\n

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\u201cA second issue would seem to be the need to give the shareholders more \u2018transparency\u2019 in their ability to assess how the company is going.<\/p>\n

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\u201cAll these rather diverse business units cannot be easily managed within a single business and they have quite different profits and growth patterns.\u201d<\/p>\n

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Dr Axel Bruns, a professor at QUT\u2019s Digital Media Research Centre agrees and says we\u2019ll have to wait and see whether they\u2019ll be any real changes apart from the rebrand.<\/p>\n

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\u201cIt might not make any kind of difference whatsoever, it might just be renaming and restructuring internally,\u201d he says.<\/p>\n

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\u201cBut at the same time it may well mean that Alphabet becomes a much broader, more diverse holding company that\u2019ll allow these people that are leading innovators to play in other spaces as well.\u201d<\/p>\n<\/p>\n

Lessons for entrepreneurs and startups<\/b><\/h2>\n

While this move might be as easy as ABC for a $US445 billion global giant like Google, there are still lessons in this major switch for smaller Australian startups and entrepreneurs.<\/p>\n

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Startups that are looking to rapidly expand could look to this as an example, Mazzarol says.<\/p>\n

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\u201cI think entrepreneurs and founders can simply learn that as a company grows from a smaller, fast-growing and rather dynamic entity into a larger and more complex one, they have to go back to management principles and set up the company in a manner that allows them to manage size and complexity,\u201d he says.<\/p>\n

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\u201cIt just makes good business sense as a company grows larger, and has more diversification in its business portfolio.\u201d<\/p>\n

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This is often the hardest part of running a startup, he says.<\/p>\n

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\u201cThe easiest thing to do is to start up a new business venture,\u201d Mazzarol says.<\/p>\n

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\u201cThe hardest thing is to grow it into a large company and manage that sustainably. The founders of Google are to be commended for their efforts so far.\u201d<\/p>\n

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It might also be a sign Google is looking to diversify its portfolio and invest in more startups, Bruns says.<\/p>\n

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\u201cIf Alphabet positions itself as a more aggressive innovation company then it may simply provide another opportunity for entrepreneurs or startups to get bought by a major player,\u201d he says.<\/p>\n

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\u201cIf Alphabet is looking to increase its portfolio of interesting companies, some struggling startups may have another place to go and pitch.\u201d<\/p>\n

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Raising your<\/i> first round of capital<\/i><\/a>? Starting a<\/i> crowdfunding campaign<\/i><\/a>? Want to grow your business<\/i> with Instagram?<\/i><\/a> StartupSmart School can help.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

There are lessons for Australian entrepreneurs in Google\u2019s big restructuring and rebrand announced on Tuesday, experts say.   Google announced<\/p>\n","protected":false},"author":1,"featured_media":59478,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,24,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44020"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=44020"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/44020\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/59478"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=44020"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=44020"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=44020"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}