WIN-WIN NEGOTIATION APPROACH 2
Win-Win negotiation is strategy which ranks to be most accepted and popular way of
doing business negotiations. Here both parties are calling the shot because every party has vested
interest about Relationship and Issue. This strategy forms a basis of long-term relationship
because the issue at hand has a mutual importance. The relationship and business are both
important hence making the appropriate negotiation strategy to be Win-Win. The negotiation
position is that both parties should find a compromise which is mutually acceptable. At the end
of the negotiation process, both parties should feel comfortable at the final solution or agreement.
For instance, this negotiation strategy is applicable between the supplier and the buyer, their aim
is to reduce the costs and maximize the profits. So the relationship will matter same to the
profitability issue (Burt, and Richard,2008).
Use of Price or Cost analysis and Total Cost (TC) of ownership to evaluate the supplier's
bid or proposal
Every buyer need to analyses the price/cost to be incurred in the process and evaluate the
total costs associated to each purchase. The cost analysis is to evaluate the price proposal of the
supplier by comparing a reasonable price which will determine the profitability. Price analysis
ensure the buyer and seller arrive at a fair and reasonable price. The supplier proposal with least
costs and more benefits should be considered by:
a) Analyzing the competitors price proposal. The buyer is required to compare the prices
from various competitors to determine one wit reasonable price.
b) Comparing the prices with the regulated market price.
c) Compare the historical prices to the current estimate using the e-procurement.
