Question: Alphabet has chosen to complement its highly profitable search engine business with a large number of widely different businesses, ranging from thermostats to self-driving cars,

Alphabet has chosen to complement its highly profitable search engine business with a large number of widely different businesses, ranging from thermostats to self-driving cars, robotics, and biotech.

The firm pursued these different opportunities through a largely decentralized structure, modeled on holding companies such as Berkshire Hathaway.

Why does Alphabet own widely different subsidiaries under the same corporate structure?

What are the benefits of this choice?

What are the costs?

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Alphabets strategy of owning widely different subsidiaries under the same corporate structure can be attributed to several factors Diversification By ... View full answer

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