Texoil Case Feedback
Texoil Case – Seller Position – Analytical Essay As the seller during the Texoil case, I have prepared the negotiation with one thing in mind: how will I justify the price I want from the service station? This is why A. and I opened our discussion with rational arguments about the market in LA’s port and why it would represent a great opportunity for Texoil to buy our station. I think that we’ve been quite efficient in claiming value for our offer. It enabled us to anchor with an opening offer at USD 750,000. D. instantaneously re-‐anchored with an offer at USD 400,000 justified by its inability to give more. Then, we decided to test Texoil’s assumptions to see to what extent the offer was credible. It seemed that he could only afford this but we did not believe him because it was unclear to us that D. was not the person of charge of that business. I think that lack of trust is the main reason of our failure to close the deal. We should have better listen to him. Soon we realized that there was a negative ZOPA as our reservation values were quite far from the other. And our BATNA was more interesting from what D. offered us.