Negotiation Planning Document
By: wuty7869 • March 3, 2017 • Coursework • 378 Words (2 Pages) • 9,510 Views
Page 1 of 2
Planning Document
Negotiation: Mom.com Role: Role of Kim Taylor for WCHI
| Self | Other |
Interests / Positions | - As buyer of Moms.com, I need the show to enhance my audience position. Most of the best shows are not available and Mom.com fits my audience profile
- I also want to avoid the purchase of the show by other competitors during the 6pm time slot
- Moreover, I want to continue my relationship with Hollyville for future new programs
| - As seller of Moms.com, HOLLYVILLE needs more exposure of show to audience and win good reputation for future program selling
- Given HOLLYVILLE’s poor financial position, they need cash infusion as soon as possible and stable cash flow going forward
|
BATNA | - Purchase a different program for the same time slot from another producer with $3,000,000 in net programming revenue
| - Network stations not interested in syndicated programs
- WWIN, the independent leader with strong financial position, is interested in purchasing the program because they want to avoid other competitors to buy the show but they may not plan to broadcast the show
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Reservation Price | - Value of the alternative deal at $3,000,000 is the minimum net programming revenue we could theoretically accept before walking away from the deal
| - WWIN's payment to HOLLYVILLE
- WWIN’s strong financial position pushed up their potential payment but the show is not as priority for WWIN as for us
|
Target / Goals | - $5,500,000 without considering other terms of the agreement, under best assumptions: 8 runs, $30k licensing fee, 100% payment at year 5
- Additional goals include earnings from “Junior” with purchase price under $20k per episode
| - HOLLYVILLE’s goal is to maximize their value of the deal mainly from higher licensing fee and earlier payment savings, as well as show time slot at 6pm and higher sales price of Junior
- Not sure about their goal for # of runs
|
Sources of Power | - Time slot of the show (6pm)
- Second largest independence network
- Quick cash infusion to HOLLYVILLE
- Availability of the alternative deal
| - Desirable show for us that well fits to our audience profile
- Alternative buyer WINN
- Our future needs of purchasing programs from HOLLYVILLE
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Weakness | - Relation with HOLLYVILLE must continue for future program
- Need Mom.com to enhance audience position
| - Financial position is poor and cash is highly needed
- Bad products during the past years
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