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CASE STUDY
Interview: Carlo
D’Asaro Biondo, Google’
Solution
Case Study Analysis
Subject:
Case Study Analysis: Interview: Carlo D’Asaro Biondo, Google’s Europe Strategy
Chief in Charm Offensive
Case Study Questions
Question
11-14:
What
is the history of Google’s clashes with European authorities and people? Give
some examples. What cultural factors have been involved in these clashes?
Google made certain
changes in its privacy policies and copyright protection in March 2012. The
changes that were made regarding the privacy issues and copyright protection
raise the alarm among the people and European authorities. People were
concerned about the extent of their data that Google was accessing and what was
being done to their personal information. Google has a large market in Europe
that will affect the new privacy policies made by it. In the whole continent,
Google is the most used search engine. Also, Google did not cooperate with the
European industries because Google was more focused on selling than the
partnership, which came with a high price. For example, the privacy regulators
among Europe were infuriated by the new changes in the privacy policies made by
Google, and due to Google dominance. Google raised the alarm among the privacy
regulators and forced the privacy regulators of six countries of Europe to file
legal charges against Google. These six countries are France, UK, Netherlands,
German, Italy, and Spain. European authorities regarding privacy concerns
demanded Google change certain aspects of the privacy policy and copyrights
issues, but Google failed to comply with their recommendations. The failure to
respond to their recommendations enraged the European authorities and the
privacy regulators from these six countries intended to conduct a joint
investigation and antitrust complaint by the European Commission. And from the cultural
aspect, people from Europe are more concerned about their privacy. They want to
know to what extent their data is being taken and what is happening with their
private information. And people in the U.S. tend to take uncertainty and risks
than the people in Europe.
Question
11-15:
What is Biondo’s overall strategy when he says I can make the cake bigger for everybody
Mr. D’Asaro Biondo’s
overall strategy is to make a better understanding of the partners associated
with Google and develop better relationships to work collectively in a friendly
way instead of making enemies. The main strategy is to convince other business
industries that Google is not threatening any other business industry; rather,
it is a reliable ally. The objective is to remove the reputation of Google as a
digital invasion from Silicon Valley that is hell-bent on eradicating other
industries. The task is to convince European news publishers and other media
companies that have been struggling to make money online that Google is with
them and not against them. Mr. Biondo’s strategy is to cooperate with other
industries to work collectively that will benefit all the partners. And to show
other markets that they have nothing to fear from Google as Google tries to
expand its market as he said in the interview, “car companies should not be
threatened by Google if it tries to make its prototype driverless car. We can’t
develop things alone to replace them. I don’t believe in that. Developing a car
requires skills and know-how that we don’t have.” His statement illustrates
that he wants to work with partners in Europe by expanding Google’s market in
Europe. He will develop ideas with partners in Europe and then convey them to
headquarters, in Mountain View and will work in shaping the group’s global
product development. When he said he could make the cake bigger for everybody,
he meant to expand the market where Google and other business industries can
work together and increase their markets. His main focus is on Android, the
Smartphone operating system. By linking a system that 85% of Smartphones has
with devices like cars, watch, glasses, and TV will help other industries to
profit and also make better relationships with their customers. He said, “If we
can look at each other in the eye with respect, I think we can do incredible
things in Europe.”
Question
11-16:
What has happened since the writing of this
case? How is Biondo doing?
Mr. Carlo D’Asaro Biondo,
Google’s Europe strategy chief in a charm offensive, tried to make the reputation
of Google as an ally rather than a foe in Europe. Google’s dominance threatened
other business industries. But Mr. Biondo illustrated that other business
industries have nothing to fear from Google as Google wants to work with
cooperation with other business industries in Europe. He wanted to make
partners in Europe with various business industries and to develop a platform
where both Google, as well as European industries, can get benefits and
increase their markets. He said he would make the cake bigger for everyone by
providing a platform where European industries and Google can work side by side
and can be partners while increasing the sales as well. For example, by linking
a system in Android with TV, Watch, glasses, and cars will provide opportunities
for Google as well as other industries to increase their sales and have a better
connection with their customers. Also, to persuade the news publishers and
other media industries that Google is with them. Google’s partnership with
eight leading European newspapers to be a part of Google’s Digital News
Initiative involves the Guardian, the Financial Times, El Pais, Les Echos, La Stampa,
Die Zeit, FAZ and NRC media. The society of media VG Media sued Google because
it didn’t pay for text snippets. As a result, Google stopped using them that
became the reason for slow traffic to the publisher’s websites. VG media was
forced to give access to Google to use snippets and thumbnails and complained
to German antitrust authorities. Biondo acted upon his statement that he can
make the cake bigger for everybody, and he made partners with news and other
media industries and developed better relationships with them and made Europe
an ally. He has worked hard to make better relationships in Europe and
developed more market share in Europe. By linking system in Androids, Google
has increased its sales enormously at the same time providing other business
industries opportunities to make their market shares greater and made better
relationships with them.
Lessons Learnt from Case Study Questions
The case is about the
rising issue of rivalry between Europe and the internet search company-Google.
The lessons that are learned from this case study are that every business and
corporation should cooperate with their partners and give them a helping hand
instead of making them the enemies. No business can increase to its maximum
growth if there is a rivalry with its partners. So, to avoid any uncomfortable
situation, the companies should try to make more friends rather than enemies
and should be big enough to take the first step if it makes the whole problem
go away.
Moreover, working
together can create more opportunities for everyone, not only for the company
but also for the partners, and both can get benefits from it. By convincing the
partners that the company is a reliable ally instead of making enemies, the
company can reach its maximum success at the same time allowing partners to
grow as well. The partnership should be valued. And the companies that create
an environment that is mutually beneficial for partners instead of spreading
the competitive fear of wiping others out are more successful.
Overall Summary and Commentary Reflection
The organizations have to
make friends, not enemies when they want to build their relationships in the industries,
and they also have to develop trust among their partners. This trust leads to
business development and success. Organizations can’t survive in other
countries if they don’t have friends there in the form of partners. These
friends are made with the joint ventures where the policies and issues are
addressed in such a way that they satisfy both of the demands of partners.
Google made a mistake in Europe, where it set out policies and copyright
standards that were not accepted by its partners and even the people. This led
to antitrust complaints, and this led to the losses in the form of partnerships
and finances.
Similarly, if the
policies show that the organization is going to wipe out other companies in the
host countries, they don’t welcome the organization, and they collectively try
to wipe out the guest organization. Therefore, the best strategy is to start
joint ventures, make partners, and run the operations, which would be
beneficial for both of the host organizations and the guest organization. This
will gain their trust, and they won’t feel that they are going to be wiped out
by the expansion of some big giant company. The joint ventures would be
beneficial for both of the tiers of organizations, and they would benefit
financially and socially via them.
References
Google’s
charm offensive blindsides some opponents. (2019). Retrieved from https://www.politico.eu/article/googles-charm-offensive-blindsides-some-opponents/
Deresky,
H. International Management (9th ed.).
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