Strategies for Small Enterprises Negotiating with Large Firms

The less powerful parties tend to be creative than more powerful ones.

—Stuart Diamond

In recent years, the trend among large firms has been to merge, form alliances, or outsource to remain competitive in the global marketplace. Large firms, by contracting out value-added activities to smaller external suppliers create greater contacts between large and small enterprises. Due to their size and resources, larger firms tend to obtain more favorable agreements in dealing with smaller ones. Experience shows, however, that negotiators from smaller enterprises, when entering discussions, can improve their outcomes not only by being well prepared but also by being prepared to walk ...

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