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NextWidget v. Fabricorp Power Comparison

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Storyboard Description

Negotiating power example - Negotiation example

Storyboard Text

  • Constructive
  • The capacity to provide something the other side wants.
  • MODERATELY STRONG
  • NextWidget
  • MODERATELY STRONG
  • Fabricorp
  • Obstructive
  • We are established customers and can keep providing them revenue with no new costs and low effort.
  • WEAK
  • They can manufacture our widgets for us, without the hassle and risks of switching manufacturers.
  • WEAK
  • The capacity to prevent the other side from getting something they want.
  • Walking
  • The capacity to leave the negotiation.
  • We could take our business elsewhere, but they could quickly find another customer to replace us.
  • MODERATELY STRONG
  • They could force us to find a new manufacturer which would slow widget production, but only temporarily.
  • MODERATE
  • We have several viable alternatives including our BATNA, LocalMade.
  • Their services are in demand, but I'm not aware of a product that is equally profitable for them.
  • Normative
  • The capacity to sway the negotiation with arguments about fairness, or other normative values.
  • MODERATELY STRONG
  • MODERATELY WEAK
  • Collective
  • The capacity to enhance or augment another type of power by reaching out to individuals or group outside the negotiation.
  • We can point out we need to keep manufacturing costs down to maintain a positive bottom line, and we might deserve a discount for being conscientious customers.
  • WEAK
  • They could argue their margins are as slim as ours.
  • VERY WEAK
  • We could try to organize with other Fabricorp customers to negotiate lower prices, but that would be difficult. If they really treat us unfairly we can be sure to tell people, but that's not something we can raise in the negotiation.
  • Most collective power they could leverage would involve illegal anti-competitive collusion or interference.
  • Personal
  • The capacity to enhance another sort of power through personal qualities.
  • MODERATE
  • STRONG
  • I'm a decent negotiator, but try a little too hard to please people. I do know the business very well though.
  • Susan has a lot of experience negotiating and I always felt like she is in command of the conversation when we talk. She is extremely competent and knowledgeable.
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