The Strategy of Cooperational Negotiation: A Case Study on Intel's Acquisition

Abstract

This paper examines Intel's merger and acquisition of Altera as a case study to analyze the bargaining technique that led to a mutually advantageous solution, consolidating Intel's market position. This study comprehensively analyzed the three theoretical ideas of strategic positioning alignment, resource integration and synergy, and negotiating tactic flexibility. Initially, firms may only establish collaboration after accurately assessing their own growth trajectory and clarifying their own requirements. Furthermore, it's essential for both parties involved to make necessary adaptations in their people resources, capital resources, information resources, and other relevant areas in order to attain a mutually advantageous objective after the merger or acquisition, thereby fostering collaboration. Moreover, in the event that both parties exhibit a strong commitment to optimizing their advantages and demonstrate an unwillingness to make concessions, it is quite probable that the negotiation will not succeed. This paper offered suggestions based on these three characteristics. Firstly, by clearly defining the strategic posture of both sides in areas such as culture, economics, and market and ensuring some level of alignment or agreement, the chances of a successful negotiation are enhanced. Furthermore, by making a precise delineation of the resources possessed by each party involved, firms may efficiently combine these resources and provide mutual assistance in creating advantages. Finally, it is imperative that firms engage in discussions to secure appropriate compromises or provide relevant advantages to the opposing side in order to achieve the desired outcome of the negotiation.