Consider the bargaining situation between Compaq Computer Co

Consider the bargaining situation between Compaq Computer Corporation and the California businessman who owned the Internet address www.altavista.com^1. Compaq, which had recently taken over Digital Equipment Corporation, wanted to use this man\'s Web address for Digital\'s internet search engine (at that moment with address www.altavista.digital.com). Compaq and the businessman apparently negotiated long and hard during the summer of 1998 over a selling price for the latter\'s address. Although the businessman was the \"smaller\" player in this game, the final agreement appeared to entail a $3.3 million price tag for the Web Address in question. Compaq confirmed the purchase in August and began using the address in September but refused to divulge any of the financial information regarding the settlement. Given this information, comment on the likely values (or levels) of the BATNAs for these two players, their bargaining strengths, degrees of impatience, etc. A little bit more of this story can be found at: htto://news.cnet.com/2100-1023-214326.html. You can also visit htto://ne\\vs.cnet.com/CompaQS-AltaVista-strategv-emerees/2100-1023 3-220032.html for a bit more information on Compaq\'s plans for Altavista. Wikipedia, can also give you a general background (http://en.wikipedia.org/wiki/AltaVista ).

Solution

The bargaining strength of the company has proved to be profitable to acquire a goodwill in the market among the buyers and customers. The rise in popularity has contributed due to good quality of products and innovative technology used every time. The degree of impatience has being negligible to the vendors and customers by the company. The customer relationship has proved to be satisfactory and liked by the buyers