Negotiation with BMW Customer Relations Over the Repeated Failure of Run-Flat Tires

by: Andrew Hoffman

Publication Date: February 19, 2019
Length: 26 pages
Product ID#: 1-728-781

Core Disciplines: Marketing/Sales, Negotiations

Partner Collection:

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Teaching Note

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This case is based on a negotiation that took place in the fall of 2018 between a BMW customer and BMW Customer Relations over the continued and repeated failure of Bridgestone Potenza Run-Flat (RF) original equipment (OE) tires. The case provides an in-class experience for students to discuss and learn multiple facets, strategies, and tactics of negotiations. It can be used within any undergraduate or graduate negotiations class or in a course that explores elements of marketing and customer service. The role of social media in this case adds an interesting and unique discussion point.

In this case, the negotiation is presented in five rounds. Students should read the five rounds one at a time and sequentially, with a pause at the end of each round for an instructor-led discussion.

Teaching Objectives

After reading and discussing the material, students should:

  • Analyze the structure of a negotiation including Best Alternative to a Negotiated Agreement (BATNA), reservation price, and target price.
  • Recognize the roles of interests, rights, and power in a negotiation.
  • Assess the role of social media in a negotiation.
  • Evaluate the use of email vs. telephone as a medium for negotiation.
  • Identify the various dimensions of customer relations presented in the case.