Final answer:
Integrative bargaining is a negotiation strategy that aims for a win-win outcome by expanding the pie and satisfying the interests of both parties. It focuses on creating value and combining resources and goals.
Step-by-step explanation:
Integrative bargaining is a negotiation strategy that focuses on creating value for both parties involved. It involves expanding the pie and finding solutions that satisfy the interests of both parties. This approach aims for a win-win outcome by combining the resources and goals of the parties, rather than viewing the negotiation as a zero-sum game.
For example, in integrative bargaining, if two companies are negotiating a partnership deal, they may explore opportunities to share resources, such as manufacturing facilities or distribution networks, to create mutual benefits and enhance their competitive advantage.
In contrast, distributive bargaining focuses on dividing a fixed amount of resources and tends to lead to compromises or zero-sum outcomes, where one party gains at the expense of the other.