The strategy for a business negotiation consists of the objectives and overall considerations that have been taken in the run-up to the debate:
- Where do you want to go with this counterpart?
- How should cooperation develop overall?
- Which parts of this supplier's range should have what role in the category in the future?
- Etc.
In some companies and for some negotiators the preparation of a negotiating strategy is not given sufficient priority.
With proper preparation and professional implementation, you can ensure important strategic and competitive advantages for the company. When choosing your negotiating strategy overall, there are five fundamental strategic ways to go:
- Take it or leave it
- Wrangling
- Objckt based
- Open debate
- Problem solving
The balance of power determines the strategy choice
The balance of power determines the strategic choice because each of the five negotiating strategies above is based on how the negotiating power is distributed between the parties. Therefore, before the actual debate, which is at the forefront of the strategy, the power is assessed.
Once the negotiating power between the parties has been identified, the negotiating strategy is chosen in the model below. In some cases, the levers of two strategies could be used in the same negotiation.
Brandculture has helped many types of organizations develop their competencies for negotiations. This applies, for example, to wholesalers, industrial and service companies and to retailers. The solution is always tailored so that the tools and the facilitation process fit the company's situation and industry. This will create the greatest improvement in results.
If you want to read more about the tactical game in negotiations, please press here and about Annual Negotiations, see here