Negotiation Strategy Research Of BMW Brilliance Automotive Ltd

With the increasingly competition in the modern market, all companies develop their procurement and supply chain management in order to improve the core competencies. The effectiveness and efficiency of the procurement determines directly the cost level and the profitability of the company’s business capacity and the market competitiveness, and thus deciding their survival and the development. Systematic management of the raw material suppliers and the management led by the purchasing commercial negotiations is the most direct and efficient method to reduce the raw material procurement cost in the Chinese enterprises. Therefore, purchasing commercial negotiations is the most important means to achieve the procurement target and its ability affects the cost of control and then directly affects the enterprise’s core competitiveness.The BMW cars produced by BMW Brilliance Automotive Ltd. are the2nd luxury car brand which achieved the local content40%, just after the Audi cars’achievement. Its achievement of the localization not only led to the high-end auto brands in Chinese development, but also provides a new round of opportunities and challenges for local suppliers. But for BMW Brilliance, how to increasing the negotiations ability and optimize each step in the negotiation process in order that supplier could reduce their cost gradually while maintaining and improving the product high quality, thereby OEM could secure the best profit of the enterprise has become a challenging topic.Commercial negotiation is the best way to achieve the implementation of the procurement strategy and planning, and also the best way to communicate with suppliers about the purchasing demands. In the purchasing process, the negotiation strategy based on the sound negotiation process could let the buyer work efficiently, and then create more valuable profit for company.The article proposes purchasing negotiation strategy for BMW Brilliance Automotive Ltd. according to modern purchasing commercial negotiation characteristics, and based on the modern commercial negotiation theory and purchasing negotiation circumstance and problems in the purchasing department of BMW Brilliance Automotive Ltd.. It includes development of the principle of negotiation strategies, specific negotiation strategy based on the different negotiation power of suppliers, how to use the negotiation techniques and methods according to BMW Brilliance purchasing and negotiation characteristics in the phase of the preparation, opening, consultation, compromise and closing. Through these measures and methods, we expect to help improving the negotiation ability and efficiency of BMW Brilliance, and ultimately to achieve the procurement target.