Alphabet’s business model works like this:
Alphabet makes most of its money from digital ads, with Google Ads and YouTube Ads being the biggest revenue sources.
Google Cloud and AI are important for future growth, competing with AWS and Azure in cloud services.
AI and data help improve customer experience, making search, ads, and smart devices work better.
Alphabet has many products, like Pixel phones, Nest smart devices, and cloud services, reaching a wide range of users.
The company spends a lot on research and development, working on AI, cybersecurity, smart devices.
Core Business Processes: Alphabet focuses on online search, advertising, cloud services, AI research, and hardware development.
Shared Data: Alphabet collects and shares data like user behavior, advertising stats, and research datasets to drive its operations.
Key Technologies: Alphabet uses advanced infrastructure to link its processes and manage data efficiently, allowing for scalability.
Key Customers: Alphabet serves a variety of customers, including individual users, businesses, advertisers.
OUTSOURCING TASK FORCE
Uses AWS & Azure to expand storage & computational power.
Benefits: Reduces dependency on internal data centers and Increases scalability.
Outsourcing Type: Offshore outsourcing (Infrastructure outsourcing).
Impact on Growth: Cuts operational costs and enables faster global expansion.
Partnerships with AI-based platforms & external agencies to improve ad targeting.
Benefits: Enhances ad control, increases reach, and revenue optimization.
Outsourcing Type: Nearshore/Offshore outsourcing (Digital Marketing outsourcing).
Impact on Growth: Boosts ad effectiveness & advertising expenditures and maintains Alphabet's dominance in digital ads
Uses external AI research firms & computing resources.
Benefits: Accelerates AI development and reduces internal resource demand.
Outsourcing Type: Offshore outsourcing (Knowledge Process Outsourcing - KPO).
Impact on Growth: Optimizes R&D costs and enables faster AI feature launches.
Collaborates with external producers (e.g., Fitbit, Nest, Pixel).
Benefits: Lowers manufacturing costs and enables faster hardware scalability.
Outsourcing Type: Offshore outsourcing (Manufacturing outsourcing).
Impact on Growth: Helps compete with Apple & Samsung and ensures profitability in the hardware sector.