How to judge the negotiation strength of both parties in business negotiation

Negotiation strength refers to the sum of various factors that affect the mutual relationship, status and final result of the two negotiating parties, as well as the favorable degree of these factors to the two negotiating parties. It is different from enterprise strength. Enterprise strength refers to the scale, technical level, personnel quality and market share of an enterprise. Enterprise strength is the potential basis for the formation of negotiation strength, and does not necessarily directly constitute negotiation strength.

Under normal circumstances, the intensity of negotiations depends on the following factors:

(1) Importance of transaction content to both parties. The success of business negotiation shows that both sides have gained certain benefits, but this does not mean that the content of the transaction itself is equally important to all parties. In fact, the content of the transaction itself is of different importance to both sides, which determines the difference in negotiating strength between the two sides. -_ Generally speaking, the more important a transaction is to a certain party, that is, the more it wants to make a deal, the weaker and stronger it is in the negotiation. For example, in the process of international business negotiation, if the seller's products are in short supply, and&; Buyers are eager to buy this product. At this time, the seller's bargaining power is strong and the buyer's bargaining power is weak.

(2) Look at the satisfaction of all parties with the contents and conditions of the transaction. In business negotiations, the satisfaction of both parties is different. The higher a party's satisfaction with the content and terms of the transaction, the stronger its negotiating strength. In international sales of goods, the more the seller's goods can meet the buyer's requirements in terms of quality, quantity and delivery time, the stronger the negotiation strength, because the buyer can't make an excuse for the other party to make concessions in this case.

(3) Look at the competition between the two sides. In business transactions, there are often multiple buyers corresponding to multiple sellers. If multiple sellers correspond to fewer buyers, a buyer's market will be formed, which will undoubtedly enhance the bargaining power of buyers and weaken the bargaining power of sellers; On the other hand, if multiple buyers correspond to fewer sellers, a seller's market will be formed.

(4) Look at both sides' understanding of the business market. The more and more the negotiators know about the market of the transaction itself, the more advantages they have in the negotiation, and correspondingly improve their negotiating strength. Business quotation is an extremely valuable resource that can be transformed into wealth. Only under the premise of mastering sufficient market information can we formulate targeted negotiation strategies and tactics.

(5) Look at the word-of-mouth and influence of both companies. The stronger the business reputation of an enterprise, the greater its social influence and the stronger its bargaining power; On the contrary, the weaker you are.

(6) In addition, it also includes negotiators' knowledge, corporate reputation, relationship with opponents, sense of security for each other, the use of negotiation art and skills, negotiators' status, adventurous spirit, competitors' status and retreat.