Negotiation Examples 1

On This Page

Ever found yourself in a situation where you wished you could have gotten a better deal? Maybe you purchased a mobile phone and found out your friend purchased the same phone for a 20% lower price. Have you ever heard or read about a great negotiation and wondered how these people can negotiate?

The world is full of negotiation examples that have transformed how we close deals. Negotiations that started from $6 million and closed for less than $200K; negotiations that have resulted in the creation of multi-billion dollar companies; negotiations that changed the diplomatic and political relations between countries. Each of these examples has something to teach us – either some techniques, strategies or even mistakes that need to be avoided.

Recognizing when to walk away from a negotiation or identifying strategies that are likely to lead to successful outcomes are essential lessons derived from these diverse negotiation scenarios.

In this article, we will observe some amazing negotiation examples from around the globe and what we can learn from them. Before that, let’s briefly see why negotiation is an important skill.

Importance of Negotiation

Who doesn’t love a good bargain? Negotiation is a soft skill that can help you get great deals, whether bargaining at a local market or closing a business deal with a client.

Let’s explore in detail why negotiation skills are important.

negotiation examples draft 1 google docs

1. Resolving Disputes

When disputes arise, whether at home, in the workplace, or among friends, the process of negotiation provides a structured and respectful way to address differences. Rather than escalating conflicts, negotiation allows parties to express their concerns, understand each other’s perspectives, and have a willingness to work towards a mutually agreeable solution.

In essence, negotiation is not merely about resolving disputes but also about trying to cultivate an environment of understanding and collaboration.

2. Securing Deals

Securing deals in business and everyday life is often about finding common ground. The process of negotiation involves understanding the needs of both parties and crafting a deal that leaves everyone satisfied. A well-negotiated deal may be a win-win situation that lays the foundation for positive, long-term relationships and other collaborative opportunities.

3. Career Advancement

Your career journey is a series of negotiations. From salary negotiations to project allotments, negotiation skills are extremely important for climbing the professional ladder. Career advancement is about the ability to advocate for yourself, showcasing your value, and recognizing and rewarding your contributions. Negotiation skills can be the key to ensuring that your career trajectory aligns with your aspirations and achievements.

4. Building Relationships

The process of negotiation includes listening, empathising, and being willing to find common ground. Negotiation strengthens the bonds between individuals by navigating through differences and finding mutually beneficial solutions. It converts conflicts into opportunities for collaboration and fosters healthier relationships in both personal and professional spheres.

Now that we have established the importance of negotiation skills in daily life let’s dive into some excellent examples of negotiations.

Negotiation Examples in Business

This section will observe a few negotiation examples in the business sector or in the workplace. These examples are mergers and acquisitions negotiations, salary negotiations as well as big deals. These instances exemplify how negotiation skills are pivotal in achieving successful outcomes by the careful navigation of complex business scenarios.

negotiation examples draft 1 google docs 1

Let’s roll!

1. Time Warner – CBS Negotiations

In October 2013, Time Warner Cable faced a crisis as it reported a significant quarterly loss of television subscribers, with 306,000 customers cancelling their subscriptions due to a dispute with the CBS sports network over programming fees.

The dispute led to Time Warner Cable temporarily stopping the broadcast of CBS in major cities like New York and Los Angeles. Rather than improving the situation, it backfired. CBS emerged victorious in negotiations, securing a substantial increase in programming fees and gaining rights of your content digitally on OTT platforms. Time Warner Cable, fearing a substantial loss of subscribers, conceded to avoid disrupting the broadcast of Monday night football on CBS and agreed to try to get to the negotiation terms.

What can you learn from this?

This dispute teaches us the risk of adopting a tough stance in negotiations, as Time Warner Cable did. The key lesson is that knowing your best alternative to a negotiated agreement (BATNA) can help you develop a solution that benefits both parties. In this case study, Time Warner knew that their next best option was to compromise and increase the demanded fee by CBS. Effective negotiation skills typically involve seeking mutually beneficial solutions and ensuring a positive and sustainable resolution for all parties involved.

2. Disney – Star Wars Negotiations

Walt Disney surprised the world with an announcement that they were acquiring Lucasfilm, the powerhouse behind the iconic Star Wars brand. Robert Iger, the Chairman of Walt Disney, revealed that he and George Lucas (Head of Lucasfilm) had personally navigated the negotiations for over two years.

During media statements, both parties emphasised their high trust level at the negotiation table. George Lucas expressed his desire to relieve himself of the responsibility of upholding the Star Wars legacy, while Disney aimed to expand its movie portfolio. As a result of these negotiations, Disney gained not only control of the Star Wars franchise but also secured the rights to the Indiana Jones series and Lucasfilm’s special effects company, Industrial Light and Magic. Following the deal, George Lucas stepped down from his position, opting to retire, and subsequently joined Disney as a consultant.

What can you learn from this?

This negotiation can teach you the importance of building trust when negotiating a major deal. Like the parties in this negotiation, you need to first spend time on understanding the needs of the other party and their expectations from this negotiation and aim to build trust. Moreover, the negotiation emphasises the importance of mutual respect between parties in a negotiation.

3. Warner Bros. – Discovery Negotiations

In April 2022, Warner Bros. and Discovery Inc. announced a $43 billion merger, creating one of the most influential media and entertainment companies – Warner Bros. Discovery (WBD). The negotiation process reportedly involved intense discussions about leadership roles, content strategy, and shareholder value.

The merger closed in April 2022, with David Zaslav of Discovery assuming the CEO role of WBD. The combined entity now owns a vast library of content, including iconic franchises like DC Comics, HBO, HGTV, and Food Network. The merger aimed to combine complementary assets and strengths of both companies to create a diversified and competitive media powerhouse. Transparency and commitment to quality content to maintain audience trust remained crucial points for discussion throughout the negotiation.

What can you learn from this?

This highlights the significance of careful planning and integration strategies to ensure smooth and successful deals in a negotiation. One of the most important aspects is open communication, which is evident from the point that both parties openly discussed important topics like leadership roles after the merger, transparency and, in fact, the significance of maintaining audience trust.

Negotiation Examples in Diplomatic Relations

Negotiation skills are not restricted to business transactions and commercial deals. It also extends to diplomatic relations and alliances between states and countries. For example, an extradition treaty between India and a foreign country is a form of agreement formed after negotiations. An agreement between the States of Tamil Nadu and Karnataka for the distribution of Cauvery River water is an example of a negotiation in in diplomatic relations.

Let’s dive into a few extremely significant examples of good negotiation in this area and what you can learn from them.

negotiation examples draft 1 google docs 2

Russia – Ukraine Grain Export Negotiations

During the Russia-Ukraine conflict and tension, a major global issue that drew the attention of most countries was the restriction of grain exports from Ukraine. Several countries, such as Turkey, were dependent on the grains exported from Ukraine for their food supply, and since Russia had blocked all safe trade passages from Ukraine, these countries were approaching famine.

This compelled the United Nations and Turkey to intervene and commence a negotiation with Russia and Ukraine to strike a deal. The negotiation included direct talks between warring parties on neutral ground. Discussions focused on immediate humanitarian needs and international guarantees for the safe passage of grains. Both sides were encouraged to work on creative solutions, such as establishing a joint coordination centre to reach an agreement. A landmark agreement was reached in July 2022, allowing grain exports from Ukraine to be resumed.

What can you learn from this?

The negotiation showcased the importance of finding common ground, even in times of conflict, and prioritising human well-being. Diplomatic negotiations require long-term engagement, and parties need to be patient while discussing. Further, openness and trust-building measures are essential for successful negotiations. One unique thing that we learned from this negotiation was the importance of including a third party to moderate complex negotiations.

India-Pakistan Ceasefire Negotiations

After constant ceasefire violations at the border of India and Pakistan, backchannel diplomacy and military-to-military negotiation commenced. The negotiation aimed at de-escalating tensions along the Line of Control (LoC) in Kashmir. Key issues discussed in the negotiation included cross-border shelling, infiltration attempts, and maintaining peace at the border.

The parties engaged in direct communication and focused on immediate concerns to discuss and resolve. The conversation included talks about safety, international relations and the sovereignty between India and the other party. The parties discussed several proposals, including a few confidence-building measures, for example, hotline activation and complete adherence to the agreement. This agreement resulted in a significant reduction in ceasefire violations and improved communication between the two militaries.

What can you learn from this?

The negotiation demonstrated the importance of direct dialogue and focusing on practical steps to reduce tensions. It also emphasised the importance of making multiple offers to navigate a negotiation successfully. This negotiation can teach you the importance of confidence-building and trust-building measures in negotiations that involve parties which do not have good relationships.

The Paris Agreement Negotiations

The Paris Agreement, adopted in 2015 by 196 parties, stands as a landmark treaty negotiation in addressing climate change. It aimed to limit global warming well below 2 degrees Celsius, preferably to 1.5 degrees, compared to pre-industrial levels. However, the road to Paris was long and complex, marked by years of preparatory meetings, technical discussions, and intense political bargaining.

During negotiations, the developed and developing countries had contrasting views on mitigation targets, financial support, and technology transfer. Another challenge was building trust because securing near-universal participation required addressing equity concerns, ensuring transparency, and finding common ground despite diverse priorities. Several strategies were employed during the negotiations to address these challenges. Open negotiations were conducted, and diverse stakeholders were provided an opportunity to engage.

This helped ensure legitimacy and build trust. Long-term goals were coupled with shorter-term targets to make acceptance of terms more convenient. Further, countries submitted Intended Nationally Determined Contributions (NDCs), a climate action plan to cut emissions and adapt to climate impacts.

What can you learn from this?

You can learn the importance of multilateral negotiations in international cooperation and coordinated efforts across nations. These series of negotiations show how significant it is to make an effort to understand the needs and demands of the other party. The negotiation also shows a great use of the foot-in-the-door technique since the parties combined short-term goals with long-term goals to reach an agreement on all of them.

negotiation examples draft 1 google docs 3

Conclusion: Mastering Negotiation Skills

So there you have it – the compelling examples of why negotiation is a skill you can’t afford to ignore. From all these negotiations, we have learned one of the most important things is that negotiation isn’t about being pushy and asking what you want repeatedly. It is about empathetic understanding of what the other party wants and being prepared with our offerings and alternative offers.

The power to negotiate is within us all, waiting to be unleashed. Whether hunting for bargains, chasing career goals or building lasting relationships, negotiation is your key to unlocking success. These examples can help you learn some essential skills and negotiation strategies you can follow to strike win-win deals. You can also check our article on negotiation techniques to get an in-depth understanding of several negotiation techniques and how to incorporate them into your daily negotiations.

Avatar photo

By Ashish Agarwal

Ashish is a content writer at Kapable. A dynamic lawyer, experienced educator and content writer, he blends his legal expertise with a flair for storytelling. He has a passion for writing compelling articles and strives to simplify complex concepts, making them accessible to diverse audiences. He is dedicated to writing on contemporary topics and topics related to soft skills development. His articles showcase a deep understanding of the topic and reflect his commitment to fostering intellectual curiosity.

Read Next

Navigating Success: Unleashing Effective Negotiation Skills in the Workplace

Worried about using your negotiation skills in the workplace? In a major global research, Huthwaite found that 65% of people working in an office structure indi...

Explain the Price Negotiation Techniques: Skills Unveiled

Negotiation is a skill that holds incredible power, shaping the outcomes of transactions, both big and small. Picture this: you're at a bustling market, eyeing ...

Exploring Different Types of Negotiation Skills and Techniques

Only 80% of companies have formal negotiation processes, resulting in missed opportunities for better deals and increased profitability. Now, pause and ponder: ...