Advani Wheels and TatoMotors need to resolve issues with faulty catalytic converters in Advani's fleet and negotiate their supply agreement. Advani wants repairs completed before an upcoming race and to renegotiate the agreement to outsource repairs and reduce its reliance on TatoMotors. TatoMotors wants to retain Advani as a client and maintain its exclusivity and pricing over repairs. If negotiations fail, Advani may seek to have TatoMotors repair the fleet at a reduced cost while taking on more liability and consider outsourcing repairs in the future.
Advani Wheels and TatoMotors need to resolve issues with faulty catalytic converters in Advani's fleet and negotiate their supply agreement. Advani wants repairs completed before an upcoming race and to renegotiate the agreement to outsource repairs and reduce its reliance on TatoMotors. TatoMotors wants to retain Advani as a client and maintain its exclusivity and pricing over repairs. If negotiations fail, Advani may seek to have TatoMotors repair the fleet at a reduced cost while taking on more liability and consider outsourcing repairs in the future.
Advani Wheels and TatoMotors need to resolve issues with faulty catalytic converters in Advani's fleet and negotiate their supply agreement. Advani wants repairs completed before an upcoming race and to renegotiate the agreement to outsource repairs and reduce its reliance on TatoMotors. TatoMotors wants to retain Advani as a client and maintain its exclusivity and pricing over repairs. If negotiations fail, Advani may seek to have TatoMotors repair the fleet at a reduced cost while taking on more liability and consider outsourcing repairs in the future.
I. Immediate resolution of the issue of faulty catalytic converters, including costs of
repair, for timely repairs of the existing fleet before the MotoGP race. II. Re-negotiation of the supply agreement to potentially incorporate outsourcing of purchase and repairs for the immediate need of repairs. III. To ameliorate the internal management of TatoMotors (preferably through buying equity) for more effective cooperation between the two companies and actualizing the potential of the patented CarbonFree tech. Strengths and Weakness of Parties Strengths of Advani Wheels Strong Market Presence: Advani Wheels has immense popularity in many Indian cities including Noida where the MotoGP race is going to take place and is a fast growing company with a high valuation of $380 million. Public Image: AdvaniWheels is a popular choice among consumers in these cities as it uses a combination of environmentally-friendly “green” cars that emit 70% less hazardous gases and consumer-friendly pricing which gives them a niche over their competitors. High demand and better affordability: Advani Wheels receives tax deductions from the government owing to its lower carbon emissions, which enables it to charge lower fares for its customers. Which consequentially, boosts demand for Advani Taxis. Exclusive access to CarbonFree Tech: Enjoys exclusive purchase clause in all jurisdictions for CarbonFree technology. Weakness of AdvaniWheels Overwhelming Demand: Due to the lack of enough vehicles, the demand is not being met satisfactorily resulting in higher waiting time for the consumers. Acute shortage of time: Repairs have to be met in a short period of time in order to showcase the fleet in the upcoming MotoGP event and be chosen as the official taxi sponsor. Lack of alternative: Due to the contractual obligations, both procurement of vehicles and their repairs is exclusive to Tato Motors. Strengths of TatoMotors Patented CarbonFree Technology: The technology induces a 70% reduction in carbon emissions of the vehicles paving the way for its widespread popularity. Tato enjoys complete exclusivity ownership of the technology. No perfect alternative of the carbonfree tech Weakness of Tato Motors Lack of resources: Tato lacks resources including their relatively small repair team which has to currently work under immense time pressure, affecting their capacity to undertake timely repairs. Poor Management: Tato has been unable to actualize their growth potential due to its poor management over the past years. Prospective competition: Their USP of being environmental friendly can be challenged by the upsurge of electric vehicles. Financial dependence on AdvaniWheels: The exclusivity clause binds tato to only sell their CarbonFree vehicles to AdvaniWheels.
Needs & Interests
Advani Wheels To get the required fleet timely repaired before the MotoGP event. To maintain a clean public image regarding their eco-friendly service. To re-negotiate the supply agreement to reduce repair prices, increase warranty period and end exclusivity with TatoMotors to diversify supply and repairs. TatoMotors To ensure retention of AdvaniWheels as a client. To ensure the obligation of the purchase of additional 150 remains intact. To retain the pricing and exclusivity of the repairs. BATNA AdvaniWheels To negotiate a timely repair of the fleet by TatoMotors with a reduced price incorporating more liability on part of TatoMotors with an added prospective of outsourcing repairs in future.