NEGOTIATION STRATEGIES

NEGOTIATION STRATEGIES

1. ADVANTAGES

   • WIN-WIN
     • Long-term business relationships : The fidelity concept rests on the win-win paradigm. It means doing business with the right motive, loyalty and trust. Lack of fidelity means lack of business.
     • Efficient processes : The win-win approach projects a good business or corporate image.
     • More value in the outcomes for both sides : A win-win approach focuses on good communication to develop more value. Focusing on gaining power will not guarantee value whereas creating value will.
     • You will always be a winner with the win-win mindset or attitude.
     • Both parties can explore a variety of options. Sometimes the best solution is one you would never have thought of without the prompting and input from a mediator and/or the other party.
   • WIN-LOSE
     • Win-lose can bring more competitive advantage as the negotiator is targeted with obtaining their objectives to the detriment of the other party’s
       • Win-lose is more appropriate for certain types of purchases i.e. transactional
         • Win-lose is often perceived as a powerful perspective/position.
           • It is probably the most familiar form of negotiating that is undertaken.
   • LOSE-LOSE
     • All parties understand that losses are unavoidable and that they will be evenly distributed. In such situations, lose-lose outcomes can be preferable to win-lose outcomes because the distribution is at least considered to be fair.
     • Is aimed at minimizing loss as opposed to winning.
     • In this strategies negotiatiors don’t lock themselves into any one position that will restrict them from striking a deal.

2. DISADVANTAGES

   • WIN-WIN
     • It will not always be easy to reach a point where both sides benefit.
     • Both sides do not always meet with the disposition of consiliation
     • Agreements are not always 50/50
     • It is inevitable that one side will benefit more than the other will
   • WIN-LOSE
     • The other parties concerned are put at a disadvantage because individual benefit is sought.
     • In the end, what one side has won, the other has lost
     • The winner tends to be the first to bid, and money generally takes on more value than prestige and personal relationships.
     • Conflicts in this type of negotiations generate anguish, and the quickest way out is sought, to flee.
     • Usually an opinion is imposed, making the other party more vulnerable than another.
   • LOSE-LOSE
     • If negotiators fail to reach an agreement, both sides may end up in worse positions than when negotiations began
     • They are poorly managed and poorly resolved conflicts.
     • These are characterized by a lack of listening, judging others, extreme stances, offensive language, emotional blackmail, etc.

3. EXAMPLES

   • WIN-WIN
     • Like in the drama “Because it’s my first life”, a woman who doesn’t have a house and a man who has a home mortgage debt. One day they meet each other and share their problems, so both of them decide to start a lessee-lessor relationship. To establish their contract, both of them decide to expose their petitions and conditions and be able to live together. With that contract she wins a place to live and him a fixed income to pay his debt and don’t lose his house.
   • WIN-LOSE
     • Like in our daily lives, when we go to the cinema. You go to buy the tickets and the worker ask for the cine card and you answer that you don’t have it. So, the salesman offers you one without explain to you how the card works. He wins a sale, but you as a client, don’t know the benefits you get for buying that card.
   • LOSE-LOSE
     • Like in the drama “Beautiful love, Wonderful life”, the youngest son of a judge commits a hit and run accident where the victim dies. The mother of that guy decide to incriminate to another boy instead of her son. Ten years later her oldest son discover the truth about the accident and ask his mother to tell the truth and clean the innocent boy name. Nevertheless, expose the truth means to her resign her post and be frowned upon by the society. The judge access to tell the truth in exchange her oldest son goes out of the country. The oldest son loses his life in the place he used to live, where he born, and his mother loses her job and social reputation, but they get an innocent boy free.