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Does Your Company Have to Negotiate with a Giant that Dominates Your Business Market?
Posted By PON Staff On June 26, 2008 @ 8:38 am In Business Negotiations,Daily | No Comments
Individuals in this position often feel as though they have few if any options. In his February 2006 article in Negotiation [1] newsletter, “Negotiating with a 900-Pound Gorilla,” MIT Professor Lawrence Susskind [2] offers strategies for how negotiators in a weak position should deal with a seemingly all-powerful opponent.
You may have more successful negotiations with a stronger party if you appeal to principle. The fact is that non-monetary considerations are often more important to one or both negotiating partners than you might expect. For instance, you may emphasize the value of your existing working relationship or appeal to principles of fairness if the other side seems to be unfairly singling you out.
You can also increase your leverage by forming strategic alliances that undercut your stronger opponent’s ability to generate a better offer that excludes you. For example, you could make a joint bid with a smaller competitor for a project to reduce the risk that you would be involved in head-to-head competition [3] or be shut out of the market entirely.
The strength of the partners in an alliance often exceeds the sum of their parts. This arrangement can frequently allow you to maximize your benefits while enabling your counterpart to get the most out of theirs as well without being in direct competition [4].
Discover step-by-step techniques for avoiding common business negotiation pitfalls when you download a FREE copy of our Business Negotiation Skills: 5 Common Business Negotiation Mistakes [5] special report from Harvard Law School.Related Article: A Win Without Regrets: Winning an Auction and Not Feeling Disappointed [6]
Article printed from Program on Negotiation at Harvard Law School: http://www.pon.harvard.edu
URL to article: http://www.pon.harvard.edu/daily/business-negotiations/does-your-company-have-to-negotiate-with-a-giant-that-dominates-your-business-market/
URLs in this post:
[1] Negotiation: http://www.pon.harvard.edu/negotiation-monthly/negotiation-the-monthly-newsletter-on-business-negotiation-strategy/
[2] Lawrence Susskind: http://pon.harvard.edu/faculty/lawrence-susskind-vice-chair-pon-executive-committee/
[3] head-to-head competition: http://pon.harvard.edu/daily/conflict-resolution/to-avoid-destructive-competition-take-the-pledge/
[4] direct competition: http://pon.harvard.edu/daily/business-negotiations/sizing-up-the-competition/
[5] Business Negotiation Skills: 5 Common Business Negotiation Mistakes: http://www.pon.harvard.edu/freemium/5-common-negotiation-mistakes-and-how-you-can-avoid-them/
[6] A Win Without Regrets: Winning an Auction and Not Feeling Disappointed: http://pon.harvard.edu/daily/crisis-negotiations/a-win-without-regrets-winning-an-auction-and-not-feeling-disappointed/
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