NEW YORK (TheStreet) -- When your company has the kind of brand recognition that very few companies can even dream of, is changing the name a good idea?
Well, if your goals have expanded beyond just search-engine algorithms and into taking over the entire universe and your name is Google (GOOGL), then the answer is yes. While Google’s decision to create a parent company, dubbed Alphabet, defies all traditional logic, it took a lot of courage and is a brilliant move.
As a customer of Google’s for over 15 years, I have seen the company grow from an innovator focused on the search-engine business to a multi-faceted organization that invests in everything from self-driving cars to finding new ways to extend life. The notion of a conglomerate that houses all of thesinvee ideas under one roof is a great concept.
As a digital marketer, I focus on a company's core business, which in Google's case is the search engine and YouTube. Although I have paid attention to Google's other investments, they never affected me and that all of those efforts were housed under the same brand seemed a bit unusual. For instance, who would ever put a search engine in the same sector as a self-driving car?
Google's expansion into different areas is remarkable. Using revenue from core businesses to invest in areas that may offer high reward is the best way to boost the entire company.
With the Alphabet name, Google has more flexibility to invest without brand confusion. Google also makes a bit of a splash for itself and perhaps takes some of glare away from Apple (AAPL) and Facebook (FB), both of which seem to have grabbed more headlines during the past year. With the Alphabet announcement, all eyes are re-focused on Google.