Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • April 2010
  • Case
  • HBS Case Collection

Bill Nichol Negotiates with Walmart: Hard Bargains over Soft Goods (A)

By: James K. Sebenius and Ellen Knebel
  • Format:Print
  • | Pages:6
ShareBar

Abstract

CEO Bill Nichol must somehow negotiate a surprise ultimatum from Walmart, his largest customer, about his largest and most profitable product line: “We're dropping it.” Among its hosiery products, the Kentucky Derby Hosiery Co. produces and sells a branded line of infant socks to Walmart under an expensive license from another manufacturer, subject to unconditional, multi-year sales minimums and significant forward financial obligations. Taking out long-term bank loans, his firm has purchased modern, high-speed machinery to manufacture this line. Yet his Walmart contracts run only one year at a time. Without the Walmart volume and profit on these branded infant socks, Kentucky Derby Hosiery Co. faces financial distress. In a generally bleak North American textile environment, Nichol ponders the most promising negotiating strategy and tactics to rescue this product line.

Keywords

Customer Relationship Management; Crisis Management; Negotiation Tactics; Conflict Management; Apparel and Accessories Industry; North America

Citation

Sebenius, James K., and Ellen Knebel. "Bill Nichol Negotiates with Walmart: Hard Bargains over Soft Goods (A)." Harvard Business School Case 910-043, April 2010.
  • Educators
  • Purchase

About The Author

James K. Sebenius

Negotiation, Organizations & Markets
→More Publications

More from the Authors

    • November 2021
    • Faculty Research

    Steve Schwarzman on Dealmaking II: When They Hold All the Cards (B)

    By: James K. Sebenius and Alex Green
    • November 2021
    • Faculty Research

    Steve Schwarzman on Dealmaking II: When They Hold All the Cards (A)

    By: James K. Sebenius and Alex Green
    • November 2021
    • Faculty Research

    Steve Schwarzman on Dealmaking I: “Becoming a ‘Friend of the Situation’” (B)

    By: James K. Sebenius and Alex Green
More from the Authors
  • Steve Schwarzman on Dealmaking II: When They Hold All the Cards (B) By: James K. Sebenius and Alex Green
  • Steve Schwarzman on Dealmaking II: When They Hold All the Cards (A) By: James K. Sebenius and Alex Green
  • Steve Schwarzman on Dealmaking I: “Becoming a ‘Friend of the Situation’” (B) By: James K. Sebenius and Alex Green
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College