Distributive Tactics Analysi

PRATEEK SRIVASTAVA

Information game

Both the negotiating parties were careful to divulge any information initially. My initial intent was to only provide the information that gives a strategic advantage. However later in the game, my intentions changed, I started to manipulate the information and I could sense the same from the other side.  

Using known information to identify alternatives beforehand helps to determine how firm we can be during negotiation. Gaining insights from the information revealed by other side helps to know other party’s BATNA (Best alternative to negotiated agreement). Alternatives are also important because it help negotiation to walk way form negotiation if the deal is not good, also its helps to understand other party ability to drop the deal.

I tried to push buyer to change his resistance point by influencing him to change his beliefs about the deal. I tried to show the value of deal in terms of future prospects. For instance, I told the buyer that the high quality of our pistons will help seller to establish long term relationships with its customers and later on these long term relationships can help them to get repeat orders.

I also tried to convince the buyer that settlement is the only way possible. I leveraged available information to convince the buyer that no other buyer can ensure delivery of the class A pistons within two weeks.

Influencing other party in all possible ways

One of my targets was to reduce bargaining power of the other party during the course of negotiation. I pitched that delivering class A pistons would mean creating new flexible lines, hiring additional manpower and running more production shifts. The key here was to convey that cost of delay or no settlement is not very high for me and would not matter me much.

My second step was to communicate other party’s high cost of delay or no settlement in subtle manner.  So we discussed briefly about high value customers. I explained how value chains are connected. Any delays on the supply of pistons beyond stipulated time would mean delay transfer and magnification across the value chain. Most high value customers these days often play supply chain efficiency to compete in the market.