Typically, rent is one of the largest costs for offline retailers. However, the internet has given rise to a new set of dynamics in an online world for consumer firms with customer acquisition cost (CAC) usurping rent in importance.
There appears to be a common thread running through Google parent, Alphabet’s strategic vision and execution across the markets it enters and operates. It is well known that Alphabet has been a highly disruptive force in online digital advertising, however it appears this is not a one-off situation. There are several similar industry entry strategies, at varying stages of development, within Alphabet’s portfolio today.