8/12/2019 Luna Negotiation Case Analysis

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Josh Gatti

4/12/12

Wri 118

Luna Negotiation Case Analysis

In the Luna case that involved the companies DGG and Global Service, DGG was trying to

receive payment for trademark infringement of a pen that Global Service was currently

producing. In the negotiation, Erika did not have a very strong BATNA, which was gettinganother company to manufacture the Luna pen after a potential lawsuit that would likely only

force Global Service to cease production. DGG's interest was simply to receive money for the

use of the trademark because they had no intentions of resuming the Luna pen part of theirbusiness but still wanted the payment for its use or a potential partnership that would benefit both

parties. However, Global Service's interest was simply to keep manufacturing and distributing

the Luna pen as it represented 25% of the company's revenue. If Global Service could not

negotiate with DGG and possibly be forced to stop producing the pen in a lawsuit, GlobalService would have only one BATNA, which is to find another pen to manufacture instead of the

Luna pen.

While I liked many of Erika's approaches in negotiating, I still would still have changed manythings. I strongly agreed with her first two approaches in dealing with Mr. Feng as she displayed

a very polite and accommodating attitude in her first message to the CEO and then properlyasserted herself when the CEO was clearly brushing her off. In the first message she sent, I

thought it was a great idea to be very courteous and polite because she does not know this person

and she does not want to start the negotiation poorly. Furthermore, when the CEO clearly did not

have any interest in speaking with her, she grabbed his attention by sending the threat that sheintends to file a lawsuit. She did not lose control and start an argument, but she used the strategy

of "Use the Power to Educate" like in Getting Past the No to force Mr. Feng to take her

seriously. I thought this was an excellent tactic because the CEO's next response indicated thathe was not out of town while also admitting that he knowingly took their product without

consent and was willing to pay for the use of the name.

Her first two messages were effective, but I disagreed with the approaches she took after the

CEO had finally acknowledged the seriousness of the matter. Erika's next move was a shortmessage that essentially let Mr. Feng make the first offer, which he responded by offering a very

low percentage of future sales. Although waiting and letting the other person make the next

move can be effective, I thought Erika should have made more of an effort to set the tone sinceshe had finally gotten Mr. Feng's attention and had the advantage. This was also ineffective

because he had already stated his desire to pay a small nominal fee and by allowing him to make

an offer, she could not expect him to come back with a very high amount of money. I also likehow Erika was able to hold back any emotions or reactions when she was clearly facing adifficult situation. In the fourth situation when Mr. Feng continued to ignore her and contact her

superior, she was able to go to the balcony and set aside her frustrations in order to continue the

negotiations and ultimately come to an agreement.

There was conflict in this negotiation and the different cultures were undoubtedly a major factor.

Based on Mr. Feng's constant replies to Erika's superiors, he was either uncomfortablenegotiating with a woman or uncomfortable with Erika's status in the company. While there was

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a noticeable difference in culture, another issue was the very different legal system in China

because they do not respect trademarks and copyrights as much as other countries. However,

Erika was finally able to realize this cultural difference and complete an agreement in person.

My own negotiating style on the matrix was both accommodating and asserting. I do not think

this is always my usual style because I usually tend to be more accommodating. In this scenario,I chose more assertive options after the brush off by Mr. Feng. I felt that the threat was fitting in

this situation because it was necessary to grab his attention. I am unsure if I would have been

more effective in this negotiation because Erika was very diligent and clearly had done a lot ofdetailed research about negotiating, interests, and their BATNAs. It is always beneficial to do a

lot of research and preparation and it was obvious that she did. This helped because she knew

that her BATNA was not very strong and it was unlikely that they would receive any money in alawsuit so it would be best for both companies to negotiate. However, it took a lot of time and

messages until Erika realized the cultural differences and I think she could have gotten more

money for the use of the Luna name. I think Erika's main mistake was in situation three when she

let Mr. Feng make the next move and offer, but she was still able to keep in control of her

emotions in a difficult situation and come to an agreement.