Google 2015 Annual Report Download - page 10

Table of Contents Alphabet Inc. and Google Inc.
6
ITEM 1A. RISK FACTORS
Our operations and financial results are subject to various risks and uncertainties, including those described
below, which could adversely affect our business, financial condition, results of operations, cash flows, and the trading
price of our common and capital stock.
Risks Related to Our Businesses and Industries
We face intense competition. If we do not continue to innovate and provide products and services that
are useful to users, we may not remain competitive, and our revenues and operating results could be adversely
affected.
Our businesses are rapidly evolving, intensely competitive, and subject to changing technologies, shifting user
needs, and frequent introductions of new products and services. Competing successfully depends heavily on our ability
to deliver innovative products and technologies to the marketplace rapidly and, for Google, provide products and
services that make our search results and ads relevant and useful for our users. As our businesses evolve, the
competitive pressure to innovate will encompass a wider range of products and services, including products and
services that may be outside of our historical core business.
We have many competitors in different industries, including general purpose search engines and information
services, vertical search engines and e-commerce websites, social networks, providers of online products and services,
other forms of advertising and online advertising platforms and networks, other operating systems, and wireless mobile
device companies. Our current and potential domestic and international competitors range from large and established
companies to emerging start-ups. Established companies have longer operating histories and more established
relationships with customers and users, and they can use their experiences and resources in ways that could affect
our competitive position, including by making acquisitions, continuing to invest heavily in research and development,
aggressively initiating intellectual property claims (whether or not meritorious), and continuing to compete aggressively
for advertisers and websites. Emerging start-ups may be able to innovate and provide products and services faster
than we can or may foresee the consumer need for products and services before us.
Our competitors are constantly developing innovations in search, online advertising, wireless mobile devices,
operating systems, and many other web-based products and services. The research and development of new,
technologically advanced products is also a complex and uncertain process requiring high levels of innovation and
investment, as well as the accurate anticipation of technology, market trends, and consumer needs. As a result, we
must continue to invest significant resources in research and development, including through acquisitions, in order to
enhance our search technology and our existing products and services, and introduce new products and services that
people can easily and effectively use. If we are unable to provide quality products and services, then acceptance rates
for our products and services could decline. In addition, these new products and services may present new and difficult
technological and legal challenges, and we may be subject to claims if users of these offerings experience service
disruptions or failures or other issues. Our operating results would also suffer if our innovations are not responsive to
the needs of our users, advertisers, and Google Network Members, are not appropriately timed with market
opportunities, or are not effectively brought to market. As technology continues to develop, our competitors may be
able to offer user experiences that are, or that are seen to be, substantially similar to or better than ours. This may
force us to compete in different ways and expend significant resources in order to remain competitive. If our competitors
are more successful than we are in developing compelling products or in attracting and retaining users, advertisers,
and content providers, our revenues and operating results could be adversely affected.
Our ongoing investment in new businesses and new products, services, and technologies is inherently
risky, and could disrupt our ongoing businesses.
We have invested and expect to continue to invest in new businesses, products, services, and technologies.
Such endeavors may involve significant risks and uncertainties, including insufficient revenues from such investments
to offset any new liabilities assumed and expenses associated with these new investments, inadequate return of capital
on our investments, distraction of management from current operations, and unidentified issues not discovered in our
due diligence of such strategies and offerings that could cause us to fail to realize the anticipated benefits of such
investments and incur unanticipated liabilities. Because these new ventures are inherently risky, no assurance can be
given that such strategies and offerings will be successful and will not adversely affect our reputation, financial condition,
and operating results.