Negotiation strategy and tactics
In a way, negotiation situations are the essence of multiple-player conflicts in strategic interactions. Two or more parties with distinct and usually diverging interests interact with one another, each attempting to achieve their individual goals. Contracts between customers and suppliers are another important example, as are negotiations between a company and labor representatives or those in the political arena. Each participant may be able to open certain directions or block others. A large part of success in negotiations is achieved due to thorough, sometimes even painstaking, preparation. This is true for the details of the subject at hand but also regarding the participating party’s objectives, strategy, and tactics. Negotiations can be conflict-oriented or based on partnership. In fact, they can even be both at the same time.
Selected cases: Negotiation strategies and tactics
Preparing and accompanying a major request for proposal
After a request for proposal, our client negotiated a complicated and innovative new technology investment in the mechanical engineering industry with the two remaining suppliers. In supporting the client during the preparation phase and the actual negotiation, complex bundling issues had to be resolved, and governmental issues were also at stake. At the same time, all parties had to safeguard their negotiating position to keep prices within the desired range and to ensure that both suppliers remained in the process.
Preparing a major customized offer for a highly customized contractual agreement
Our client, a major IT company, was preparing a contractual offer for a major customer. While preparing the negotiation, we conducted an intense stakeholder and decision-maker analysis for the customer and the main competitors. The key to resolving the issue was considering the multiple perspectives of the key parties involved.