Alphabet was created in 2015 by restructuring Google to promote expansion into lucrative niches, as well as enhance the independence of subsidiary companies in their business operations. Alphabet acts as a parent company with the mandate of selecting directors, formulating strategies, and managing operations of various subsidiaries. The core activity of Alphabet is the provision of the Internet services related to online search and advertising because it generates about 86% of revenue (Johnson & Regner, 2017). In its business model, Alphabet employs horizontal integration in the acquisition of companies across the world and venturing into new markets. Alphabet has gained over 150 companies, and the trend of acquisition continues to increase for the next decade (John & Regner, 2017). Acquisitions have significantly expanded market share, sales, and profitability of Alphabet. With the objective of coming up with strategic options, this case analysis assesses and evaluates Alphabet, identifies central issues, performs external analysis, and provides strategic options. Company Analysis of Problems Despite its growth and expansion, Alphabet experiences problems that threaten its competitiveness in the global markets. Restructuring of Google to form Alphabet is a notable problem because it did not address leadership challenges regarding managerial freedom. Johnson and Regner (2017) explain that the retention of Sergey Brin and Larry Page as chief executive officer and president of Alphabet, respectively, allowed the perpetuation of a laissez-faire approach to leadership. Another problem related to the leadership is the loose corporate structure that cannot amalgamate subsidiaries. Therefore, leadership with the same ideology and loose corporate are two problems that require effective management style, as a possible solution. The declining proportion of advertisers who pay click-by-click is a significant problem that decreases revenues accrued from advertising. Technological advancements in the mobile industry have led to the emergence of smartphones, which allows customers to access the Internet without necessarily utilizing products of Alphabet. The increasing use of mobile applications is a problem that diminishes revenues from the Internet search. Alphabet projected the demand for online adverts to increase from 6%; however, the problem is that a significant proportion of advertisers prefer television as their mode of advertisement (Johnson & Regner, 2017). Increasing competition in the video business is a prominent challenge because Amazon, Netflix, Facebook, and Twitter decrease the demand for YouTube services. The advent of social media as an advertisement platform increases competition in the advertisement industry. Facebook offers stiff competition to Alphabet because it provides cheaper advertising spaces to customers. Inability to meet the needs of customers is a problem because Alphabet created Google+ as a social network that unifies diverse products. Despite its re-introduction as a platform for interest groups and collections of information, Google+ struggles to gain expected market share and compete effectively with other social media platforms (Johnson