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Your client created and designed a new type of chairlift for ski resorts, that pulls skiers up the mountain in a faster, safer way. She headed out
to Colorado to sell her product, Cherry’s Chair, to the three largest ski resorts in the area.
Initially, Atlantis Ski Resort offered an exclusive contract to purchase three chairlifts for $600,000. They indicate that they might purchase two more chairlifts in the future, depending on the success of the lift. Atlantis insists upon the exclusivity clause and want to be the sole resort offering Cherry’s Chair. After years of hard work, your client was so excited to have an offer, that she signed the contract right away.
3 weeks later, before construction begins at Atlantis, Butler Ski Resort makes an offer to purchase two chairlifts, for $500,000. They indicate they will possibly purchase three more, and they have no need for exclusivity. Your client is free to sell the chairlift anywhere else.
This is a much better deal for your client, and she is very worried because she already signed a contract with Atlantis. She is tempted to breach the contract, but knows that she will be sued by Ski Atlantis. She wants to negotiate a better deal, and comes to you for advice.
I would like you to identify your client’s BATNA, the other party’s BATNA, as well as ways that you could improve your client’s negotiation position. Please use strategies and ideas discussed in class. Additional research is always welcome, but not necessary.