ABSTRACT
Negotiators try to dominate the other party because they believe they are in direct conflict with the other party over limited resources. Negotiators in a distributive situation fight hard for their positions because their loss is the other side’s gain. The negotiators believe there will be a clear winner and loser, but not multiple winners. A manufacturer and a distributor were negotiating a typical limited distribution agreement. After some discussions, they agreed to have the distributor make a small change to products sold in one region. Therefore, the manufacturer sold more products and the distributor gained value-added work. Both sides created new value together, beyond their plans for “typical distribution”. It is a good habit to think about opportunities for creating new value from the start of a negotiation, even during the early planning phases. A negotiation with mostly low scores, such as mapped by dotted line, is best handled with a competitive strategy.
