4-2: Iberia Airlines Builds a BATNA - Case Study Example

IBERIA AIRLINES BUILDS A BATNA Critique the negotiation strategies and tactics of all three key executives involved: Dupuy, Leahy, and Bright.Dupuy was a shrewd negotiator. Dupuy wanted two purchase airplanes for Iberai, but wanted to be fair on the two major airplane makers, Boeing and Airbus. In as much as since 1997, Iberai had only bought airbus planes. Dupuy decided on bringing the two salesmen of the two airplane makers on the negotiating table to compete for the bids. Dupuy wanted to be convinced of the two new models, which would be best for Iberai in all ways.

In leaving the two parties to compete, was a good strategy. Leahy on the other hand, ensured that Airbus had won the contract (Alex, 2013). In being in constant communication with Dupuy and adhering to the conditions placed by Iberia, airbus managed to win the bid to supply airplanes to them. Bright on the other hand had poor negotiating skills as he failed to meet some of the conditions placed for the bid to be won. 2. Critique the overall marketing strategies of the two aircraft makers as demonstrated in this case.

Airbus Company had a shrewd marketing strategy. With the offers on the table together with its competitor, Boeing, Airbus tried its best to ensure that it took the winning bid from Iberia (Alex, 2013). With a starting target of Iberia wanting to purchase any of the two airplanes at a cost 10% lower than their initial bids so as to meet the target, quite a lot of promises were made by the two companies on the benefits they would give to Iberia in case they were awarded the bids. Airbus managed to lower its price to the target value expected by the Iberia management, plus also added a number of offers, hence making them the best company on the table to win the bid. 3. What were the key factors that ultimately sent the order in Airbus direction?

The key factors that sent the bid to be won by Airbus were the benefits accrued by buying their planes. First of all, they offered a cheaper buying price when compared to their competitors (Alex, 2013). In addition, the Airbus Company managed to chip in issues with future value plus maintenance costs which threw their competitors off-guard hence winning the bid. 4. Assume that Iberia again is in the market for jet liners. How should Bright handle a new inquiry? Be explicit.In the event that Iberia returns to the market in search of new Jet liners, Bright should handle the situation differently and learn from his past mistakes.

First of all, he should employ a good negotiation and marketing strategy in place that would lead to them winning the order.This can be achieved through employment of a top notch marketing team with the capability of closing deals. In addition, Boeing can find ways of cutting down on their expensive initial price to come to a price lower than Airbus. In addition, they should place after sale services in place that would attract Iberia’s eyes more than Airbus (Alex, 2013). For instance, they should chip in a reduced maintance fee, fuel cost cut downs, employee training, free monthly check-ups and repairs on the planes plus many more.

ReferenceAlex Croft. (2013). Iberia Airlines Builds A Batna. New York: Devki Publishers.