Reed–YPEC Negotiation: Reed Oilwell (A)

Case Solution

John Zerio
Thunderbird School of Global Management ()

This negotiation leads to a situation full of opportunities for difficult negotiations and unconventional deliberations on solutions that add value. US supplier Reed Oilwell sees this business opportunity as a side door to Petroecuador’s supplier network. The intercultural elements of the relationship are important, especially in relation to the various political aspects that make up the relationship between YPEC and its main client Petroecuador. Negotiation illustrates the potential of a collaborative approach, but it also offers the opportunity for a competitive outcome. The parties are instructed to reach an agreement that meets their short-term objectives, but their choices will affect their ability to establish a preferred delivery position in new oil field operations.

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