Value Chain analysis of Alphabet:-
Alphabet is among the leading technology companies of the world. The brand has achieved a lot of growth in the past several years. However, a key to successful growth is the successful management of value chain. This is an analysis of the value chain management of Alphabet. A value chain consists of both primary and secondary activities.
Primary activities:
Inbound logistics:
Google relies on external suppliers for many things like manufacturing of its assemblies and finished products, third-party arrangements for the design of some components and parts, and third party distributors, including cellular network carriers. However, there is very little evidence that the brand spends much on inbound logistics.
Outbound logistics:
Alphabet delivers a large part of its services through the internet. To keep its products running 24/7, it relies on data centers which are spread around the world from Americas, Asia and Europe.
Operations:
Alphabet is headquartered at Mountain View, California. Apart from that, it has office/building space and research and development sites around the world, primarily in North America, Europe, South America, and Asia at several locations.
Marketing:
Alphabet relies on marketing for brand recognition as well as for driving product sales higher. Its marketing and sales expenses reached 12.9 Billion dollars in 2017.
Support Activities:
Firm Infrastructure:
Alphabet has managed a huge infrastructure globally. It is led by its founders with Sunder Pichai as Google’s CEO. The various businesses of Alphabet apart from Google operate independently as separate businesses.
HRM:
HRM is a strategic focus at Google and the brand pays some of the most enormous salaries in the entire industry. Alphabet has established one of the most attractive corporate cultures focused at employee empowerment and welfare. Not just fat salaries, the brand has made major perks available to its employees.
Technology:
Google is one of the technology giants and at the core of its business model is Information technology. Its business is centred on the most efficient search engine. Alphabet also invests a very large sum in innovation every year. It also offers cloud based services.
Procurement:
Alphabet has entered many long term contracts with its suppliers for procurement. Timely availability of raw material is important for continuous delivery of its products and services.
Sources:
Alphabet Annual Report 2017