Google, with new CEO Sundar Pichai, recently announced that they would become the subsidiary company of a new firm called Alphabet. According to co-founder Larry Page, Alphabet will help streamline Google’s operations and keep it accountable.
Page named Sundar Pichai as the new CEO of Alphabet. Since Alphabet is now the parent company of Google, Pichai is now in one of the world’s most enviable and rewarding positions. It may also turn out to be the most difficult.
The creation of Alphabet was a strategic move by Google. Now, Google and Sundar can focus on its brand first rather than expending energy on all of the newly acquired arms of Google.
All of the Google co-founder’s “crazy ideas” for the future are now under Alphabet’s umbrella as Pichai becomes the ringmaster of one of the world’s wealthiest technology companies.
In 2014, Google saw $66 billion in revenue. This revenue was primarily raised from its advertising initiatives. If Google wants to continue down this path of enormous growth, it will have to launch new business ventures that are roughly the size of a Fortune 500 company.
This is a difficult challenge, even for Google with Sundar Pichai at the helm. Thankfully for Pichai, Google is already in excellent shape. Pichai also has firsthand knowledge of Google’s operations after years as one of the firm’s top executives.
Unfortunately for Sundar, Google now faces more aggressive competition than ever before. Facebook is making a play to dominate the online video industry and is taking a direct shot at YouTube.
Last October, Larry Page put Pichai in charge of most of Google’s products. This move may have been a dry run for Pichai’s transition to become the CEO of Alphabet.
Pichai’s friends and colleagues say that he is a unique combination of traits. He is both highly intelligent and incredibly personable.
Sundar Pichai’s new position as CEO of the new Google stresses two important points about the future of Google’s business.
The first point is that Google aspires to run a meritocracy.
The second, and perhaps more important point, is that Google wants to make it known that it can see its competition coming. With the creation of Alphabet, the Internet behemoth is ready and waiting to greet anyone who is brave enough to challenge it.
[Phto By: Justin Sullivan/Getty Images News]