Negotiations Strategies In International Business
By: Kęstutis Peleckis
Vilnius Gediminas Technical University, Lithuania
Distorted market competition poses new challenges for business negotiations. It affects the balance of negotiating powers among negotiation participants. Such situations often result in negative consequences for both buyers and sellers. As a result, it opens additional opportunities for international business, because of the emergence of other market participants in the relevant markets, which can provide additional alternatives for both buyers and sellers by reducing the negative impact on the distortion of competition and balancing the negotiating powers of the negotiating parties. The development and implementation of an effective international business negotiation strategy, as well as the assessment of the negotiating powers among negotiating parties and the essential components of their deviation from balance is important for the effective use of the potential of business negotiations — the negotiating power. When solving the scientific problem it is necessary to ensure that its solutions help to consider the balance of negotiating power among negotiation participants, allowing them to achieve the balance and to ensure the most efficiency of the development and implementation of their negotiation strategy.
A higher number of sellers and suppliers, allows the buyer to enjoy a greater variety of solutions and more alternatives. In such case, the buyer can take advantage of competitive tension. However, the situation in the absence of competitive tension is completely different. One of the reasons resulting in a lack of competitive tension in the market is that the number of suppliers is not sufficient to create a free and open competition, for example, in case of a monopoly. Therefore, we could define market distortion as the absence of free and open competition. Free competition means that market participants are competing with each other, instead of cooperating to create and maintain a cartel. Open competition means that the market entry barriers are sufficiently low, thus making the profits of existing players rather low, because otherwise new entrants coming into the market would try to sell with lower profits, which would essentially be useful for customers and thus ensure their sales.
In the international business negotiations, preparation can be more complicated on the feasibility to assess businesses negotiating power and the ability to use them due to language and cultural barriers and because of changes in the negotiating context. Participants of international business negotiations should know the culture of another country, as it may affect other aspects of the negotiations depending on the context of the negotiation dynamics. Held such negotiations negotiator should understand the other culture symbols meanings, verbal and non-verbal language nuances and possible incompatibilities between different cultures. In preparation for the negotiations and having opportunities, it should be included negotiation expert or mediator who should know the culture of the other party, experienced in the possible context of the other side of the negotiation talks. Such helper will be able to mitigate the environmental impacts to