Alphabet (Google) Product Teardown

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Alphabet (Google) Product Teardown

You will dive deep into the customers, products, platforms, services and sectors that Google (Alphabet) is focused on dominating.

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In this training, you will

  • Experience the resilience and discipline required to truly understand your competition.
  • A deep understanding of Google (Alphabet)'s Product Suite and Service Offerings.
  • Learn how you need to radically diversify your business’ customers, plans, products, platforms and sectors to emulate Google (Alphabet)’s success.
  • Learn more than you ever wanted to know about Google (Alphabet). 
  • Have a new respect for Google (Alphabet)’s strategy and its breadth.

Skills that will be explored

Key Metrics

Market Cap

$724.607B

PE Ratio

57.81

EPS

 17.99

FY ’17 Revenue

$110.855B

Google Segment Revenues

$109.7B

YOY Growth: 23%

Google Advertising Revenues

$95.375B

Google Other Revenues

$14.277B

Retrieved March 27, 2018 from Yahoo Finance and Alphabet 10-K

Leadership

Larry Page

CEO, Alphabet

Sergey Brin

President, Alphabet

Sundar Pichai

CEO, Google

Growth

Revenue Growth

In this training, you will

Customer Growth

Valuation

Acquisitions

Acquisition Strategy

In this training, you will

  • “A push into cloud and hardware: Alphabet’s pushing for growth in areas beyond advertising, with R&D, acquisitions, and investments focused on sectors with a proven capacity to become revenue and profit centers, such as premium mobile and smart home hardware, and especially cloud & enterprise services.”
  • “Acquisitions have picked up again: The company made 9 acquisitions in Q3’16, the most since Q3’14, which could signal a resurgence in its M&A appetite given its stated intention to bulk up further in mobile hardware (with the Pixel phone and smart home hub), enterprise cloud offerings, transportation/logistics, VR, and other areas.”

Key Acquisitions

YouTube (2006)

  • Google acquired YouTube in 2006
  • By 2016, this deal was “widely considered to be one of the best consumer tech acquisitions ever.”
    • “YouTube was one of the world’s fastest-growing websites, and its executives had a clear understanding of what users wanted out of a video site.”
    • “YouTube has evolved into the world’s biggest video search engine, with a sprawling database of clips made navigable by Google’s smart algorithms. Google can sell display and video ads against all these clips, to the tune of more than $5.2 billion in estimated revenue this year, according to eMarketer.”
    • “Splitting ad revenue with video creators spurred the creation of higher-quality content. That content has been extremely popular among kids and young adults, whose clicks are the precious manna keeping thousands of media/tech/advertising professionals employed. And YouTube has aggressively reinvested its money into the formats of the future, such aslivestreaming and virtual reality.” (Oct 2016)

Android (2007)

Google quietly acquired Android in 2007: “ the search giant quietly bought the wireless start-up in July for an undisclosed sum… Android reportedly makes software, or operating systems, for wireless devices that are location-sensitive or personalized for the owner.”

By 2015, Android had become the most popular mobile operating system in the entire world:”

  • “In 2005, Google acquired Android Inc. for around 50 million dollars and the Google Mobile Division was born. The world watched this event with skepticism and curiosity that we can now define as almost historic…
  • Two years later, Google came up with an incredible strategic move where they offered 10 million USD to developers who would make the best Android apps from the first public version of the Android SDK. At this point, Google’s intentions became a lot clearer: they didn’t just want to build another iPhone, but a device with a flexible and adaptable system different to the Apple OS.” (July 2015)

Makani (2013)

  • Makani: “Makani energy kites produce electricity by harnessing energy efficiently from the wind.”
  • Google acquired Makani in 2013 for an undisclosed amount: It became “part of Google X, Google’s secret lab where it develops “moonshot” projects like the Google Glass computerized headgear and self-driving cars.” (May 2013)

DeepMind (2014)

Titan Aerospace (2014)

Robotics Companies

Investments

  • Methods of investment:
    • “A few [investments] are made directly by Google subsidiaries or divisions. (DeepMind, for example, has invested directly in telemedicine startup Babylon.) But the majority are made by Alphabet’s two investment arms: the earlier-stage focused GV (formerly Google Ventures) and expansion-stage-oriented Google Capital.”
    • “…the company’s most prominent strategic investments include several mega-deals to companies in “frontier” areas such as augmented reality, space transportation, and exploration. It has led a $542M round to stealthy augmented reality outfit Magic Leap in October 2014, as well as SpaceX’s $1B Series D in January 2015. Sources indicated that Google put up nearly $900M of the latter deal, for a sizable 7.5% stake in the company.”
    • “…Google’s hefty SpaceX investment aligns with broader Alphabet moonshots to improve geospatial data (Terra Bella, formerly Skybox Imaging) and drive global internet connectivity (Access and Energy, Project Loon, etc.).”
  • How Alphabet invests in startups: “Alphabet has many investment vehicles that help it keep a watch on tech built beyond the Googleplex, including GV, CapitalG, Gradient Ventures, and strategic investments made out of its corporate arm and individual business units.” (Aug 2017)
  • Google Ventures is the venture capital arm of Alphabet, Inc.
    • The GV portfolio includes companies in the consumer, life science and health, data and AI, enterprise, and robotics sectors.
  • In 2010, Google invested in two wind farms, its first investment in utility-scale renewable energy generation.
  • Recently, Google unveiled significant investments in France: The search group plans to open a new artificial intelligence center in France within weeks… The company also said that it would open four Google Hubs across the country, which will focus on free training in online skills and digital literacy.” (Jan 2018)
  • Google also recently invested in a Chinese startup, Chushou: “an online e-sports platform where users can live stream their mobile phone games. The service has roughly 8 million streamers and 250,000 live streams a day, said the companies in a statement. Google will help the Chinese firm expand its services to target more overseas viewers, it said.” (Jan 2018)

Management of Data

Internet and Home Devices

Product Deep Dives

Social

Google (Google+)

Communication

Gmail

Gmail is Google’s email server.

PHOTO

Google Photos

Google Photos is a free photo sharing and storage service launched in 2015.

Video

Youtube

Youtube Live, Gaming

Youtube Live, Gaming

  • “Peter Warman, CEO of Newzoo, says YouTube still dominates the video market worldwide by a margin of at least 2:1. He says half of all gamers in the U.S. watch gaming videos regularly on YouTube, compared with just 21% who watch on Twitch. YouTube also owns the global market. Warman cites as an example France, where 49% of gamers watch YouTube regularly, compared with just 9% who visit Twitch. And those numbers hold true in Brazil, where YouTube has a 57% to 24% edge, as well as the United Kingdom, which gives YouTube a 47% to 21% lead.
  • YouTube is also courting an older, more affluent viewer, according to the research firms. The average age of viewers watching gaming content on YouTube is 28, compared with 21 on Twitch. Twenty-eight percent of these YouTube viewers are considered middle income and 35% are considered high income. The majority of Twitch users make less than $50,000 a year, according to Quantcast.”
  • Twitch Ups Its Game to Compete with YouTube Gaming

Google Play Movies and Tv

MUSIC

Youtube Red

  • “My long-term bet is still on Google creating a parallel music industry around YouTube, one that is entirely opted out of the traditional music industry’s rights frameworks.” https://musicindustryblog.wordpress.com/tag/youtube-red/
  • “Google has tried to create music-centric products to win over fans and appease the record industry, but it’s failed to capture the same number of users as Apple or Spotify. Instead, YouTube has released a number of products, including Google Play Music, YouTube Music Key, and then, after Music Key’s slow growth, the video-focused YouTube Red. Meanwhile, Spotify has soared to 140 million monthly users, with 50 million of them paid, while Apple Music has over 30 million subscribers. Google has never released user numbers for its music streaming service, and YouTube Red, which had just 1.5 million subscribers a year ago largely due to its limited global rollout, has irked music industry executives for its heavy focus on original video content, Bloomberg reports.”  https://www.theverge.com/2017/12/7/16749322/youtube-red-google-play-music-combine-streaming-service-remix-launch-date (Really great comments in here regarding lack of Youtube Red Availability internationally)
  • “From publicly available data, IFPI estimates that Spotify paid record companies US$20 per user in 2015,the last year of available data. By contrast, it is estimated that YouTube returned less than US$1 for each music user”
  • “User upload video streaming services, benefiting from the misapplication of ‘safe harbours’, comprise the world’s largest on-demand music audience,conservatively estimated at more than 900 million users”

Text

Google News

Gaming

Google Play Games

  • Google Play Games is Google’s gaming app, launched in 2013.
    • What Google Play Games does: “act[s] like a dashboard for all of your gaming needs on your Android device. Think of it like the Xbox or PS3 dashboard or even the Steam dashboard. It doesn’t do anything cool on its own, but gives you access to the things that do…  Using this app you can view all of your games. If those games have Google Play Games support, you can also view things like achievements. It’ll show you all the games you’ve played, the ones you’ve played recently, and the ones you have currently installed. You can also browse featured and popular titles as well as titles that support official Google Play Games multiplayer. You can view your friends on Google+ who also use Google Play Games.” (Aug 2013)
  • Games got mini-games and a redesign in 2017: “it’s a lighter interface, with less information displayed until you start tapping some buttons, and it has also gotten rid of the “discover new games” area of the previous Play Games iterations.” (Nov 2017)
  • Games are also available via YouTube Gaming.

NLP

Google Natural Language Processing

Artificial Intelligence

Google Artificial Intelligence