Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. TrademarkLogo.com: Transforming Legal Services on the Internet case study is a Harvard Business School (HBR) case study written by Ali Farhoomand, Monica Wong. The TrademarkLogo.com: Transforming Legal Services on the Internet (referred as “Tml Trademark” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. It also touches upon business topics such as - negotiation strategy , negotiation framework, Intellectual property, Internet, Marketing, Regulation.
Negotiation strategy solution for case study TrademarkLogo.com: Transforming Legal Services on the Internet ” provides a comprehensive framework to analyse all issues at hand and reach a unambiguous negotiated agreement. At Oak Spring University, we provide comprehensive negotiation strategies that have proven their worth both in the academic sphere and corporate world.
What’s my BATNA (Best Alternative To a Negotiated Agreement) – my walkaway option if the deal fails?
What are my most important interests, in ranked order?
What is the other side’s BATNA, and what are his interests?
In 2000, Robert Wang, senior partner of the Hong Kong law firm Robert W.H. Wang & Co., spearheaded the establishment of TrademarkLogo.com (TML). He believed that legal services, like other businesses, could exploit the opportunities afforded by the Internet. The trademark practice of the Intellectual Property (IP) Department was a good candidate for an Internet venture--the process was straightforward and it required few discussions and meetings between lawyers and clients. Also, doing business via the Internet would greatly reduce the amount of paperwork, thereby solving the IP department's cost overrun problem. However, the bursting of the Internet bubble, coupled with worldwide economic woes, sent the business into a downturn in 2002. The dot-com's appeal seemed to have disappeared along with the Internet hype; traffic on the Web site slowed down, and the number of transactions tumbled. Then in 2003, the government rolled out the new Trademark Ordinance and Rules, which streamlined and simplified the trademark and service mark registration process. As part of the government's electronic service delivery (ESD) initiatives, procedural and pricing information became readily available on the Web and anyone could lodge a trademark registration application themselves--undermining the role of an IP service provider. As the new manager hired to turn things around, Poorna Mysoor was tasked with reviving the business and identifying opportunities for future growth. As she was preparing her proposal to Robert Wang, she wondered about TML's competitive advantage. How could TML make use of the Internet to establish distinctive strategic positioning? How should TML react to the government's ESD initiative? How could TML create a strong enough value proposition for its customers and suppliers?
By interests, we do not mean the preconceived demands or positions that you or the other party may have, but rather the underlying needs, aims, fears, and concerns that shape what you want. Negotiation is more than getting what you want. It is not winning at all cost. Number of times Win-Win is better option that outright winning or getting what you want.
Options are the solutions you generate that could meet your and your counterpart’s interests . Often people come to negotiations with very fixed ideas and things they want to achieve. This strategy leaves unexplored options which might be even better than the one that one party wanted to achieve. So always try to provide as many options as possible during the negotiation process . The best outcome should be out of many options rather than few options.
When soft bargainers meet hard bargainers there is always the danger of soft bargainers ceding more than what is necessary. To avoid this scenario you should always focus on legitimate standards or expectations, clearly understanding the arbitrage . Standards are often external and objective measures to assess the fairness such as rules and regulations, financial values & resources , market prices etc. If the negotiated agreement is going beyond the industry norms or established standards of fairness then it is prudent to get out of the negotiation.
Every negotiators going into the negotiations should always work out the “what if” scenario. The negotiating parties in the “TrademarkLogo.com: Transforming Legal Services on the Internet” has three to four plausible scenarios. The negotiating protagonist needs to have clear idea of – what will happen if the negotiations fail. To put it in the negotiating literature – BATNA - Best Alternative to a Negotiated Agreement. If the negotiated agreement is not better than BATNA (Negotiations options), then there is no point in accepting the negotiated solution.
One of the biggest problems in implementing the negotiated agreements in corporate world is – the ambiguity in the negotiated agreement. Sometimes the negotiated agreements are not realistic or various parties interpret the outcomes based on their understanding of the situation. It is critical to do negotiations as water tight as possible so that there is less scope for ambiguity.
Many negotiators make the mistake of focusing only on the substance of the negotiation (interests, options, standards, and so on). How you communicate about that substance, however, can make all the difference. The language you use and the way that you build understanding, jointly solve problems, and together determine the process of the negotiation with your counterpart make your negotiation more efficient, yield clear agreements that each party understands, and help you build better relationships.
Another critical factor in the success of your negotiation is how you manage your relationship with your counterpart and other people doing the mediation. According to “Ali Farhoomand, Monica Wong”, the protagonist may want to establish a new connection or repair a damaged one; in any case, you want to build a strong working relationship built on mutual respect, well-established trust, and a side-by-side problem- solving approach.
According to
Harvard Business Review
, there are three types of negotiators – Hard Bargainers, Soft Bargainers, and Principled Bargainers.
Hard Bargainers – These people see negotiations as an activity that they need to win. They are less focused less on the real objectives of the negotiations but more on winning. In the “TrademarkLogo.com: Transforming Legal Services on the Internet ”, do you think a hard bargaining strategy will deliver desired results? Hard bargainers are easy to negotiate with as they often have a very
predictable strategy
Soft Bargainers – These people are focused on relationship rather than hard outcomes of the negotiations. It doesn’t mean they are pushovers. These negotiators often scribe to long term relationship rather than immediate bargain.
Principled Bargainers – As explained in the seven elemental tools of negotiations above, these negotiators are more concern about the standards and norms of fairness. They often have inclusive approach to negotiations and like to work on numerous solutions that can improve the BATNA of both parties.
Open lines of communication between parties in the case study “TrademarkLogo.com: Transforming Legal Services on the Internet” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Ali Farhoomand, Monica Wong (2018), "TrademarkLogo.com: Transforming Legal Services on the Internet Harvard Business Review Case Study. Published by HBR Publications.
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