Negociacion Y Habilidades Directivas

1) “Time kills deals” talks about when a negotiation, which has been moving on for a very long time, loses its focus or its “momentum”. This can make that the negotiation turns other way round or maybe the circumstances of the market could change. One way or another this is generally not good to a negotiation, because you lose focus on what you are negotiating for. Comcast and TWC were negotiating for a very long time. What happened? At one moment, Comcast was talking about merging with Charter. This maybe could have happened when you are to obsessed thinking about money and making your company grow. As a result, only after 8 month of negotiating, Comcast and TWC signed an agreement of merging both companies.

However, when you are talking about purchasing a $45 billion company, you are not going to hurry up to close a deal. It is very important to understand what you are negotiating for and what are your pros and cons. They negotiated so long, that they didn´t see how the industry had changed in that time (it doesn’t say anything in any of the texts. So, I´m supposing), Netflix for example, or maybe how the expectations had change because of the idea of merging. Also, in the “COMCAST AND TIME WARNER CABLE TRANSACTION FACT SHEET”, the only pros that are mentioned are for Comcast. TWC and Comcast are tie in many situation, and also, TWC is cheaper than Comcast; that was never brought up.

2) As we read on the Comcast-Time Warner Cable deal, there are some pros for Comcast and some pros for TWC. The following points will show us in which scenario is one better than the other:

• Subscribers: Comcast has 21.6 million, TWC only has 11.4 million.

• Triple-Service Bundles: Comcast and TWC.

• Internet Service: Comcast internet speed range between 25 Mbps to 50 Mbps. TWC only between 3 and 20 Mbps.

• HD Service: Comcast up to 90 hours in HD programs. TWC has only up to 75 hours in High Definition programs.

• Channels: Comcast has packages from 80 to 200 channels. TWC has packages from 60 to 200 channels.

• Price: The starter plan at Comcast starts at $99. On the other hand, TWC starter plan starts at $89.99.

There are many more benchmarks to compare, however, this give us a perspective how this two important Cable companies are positioned in the industry they use to compete with each other.

So summarizing, Comcast needs from TWC not only the 12 million subscribers (because more subscribers is better), they also need how to low their cost, so this subscribers don´t go somewhere else. Also, they have to arrange the contract of 2 years minimum of hiring Comcast; TWC is much friendlier in that case.

On the other hand, TWC needs from Comcast the Internet platform (Comcast is much faster). They also need to improve their HD services and the customer service (based on the American Customer Satisfaction Index).

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