Case Study On The Application Of Nash Equilibrium Theory In Business Negotiation Strategy Formulation

Negotiation is one of the important contents in modern business activities.The reasonable formulation of negotiation strategy is crucial to the success of negotiation.Z company is a high-tech start-up enterprise dedicated to the design and development of PCS mobile terminals.After its first mobile phone came out and won the bidding of S provincial telecom operator,the operator put forward the request of returning the product due to design defects.The company's negotiating team for operators proposed by the return of the in-depth analysis of the real demands,work out the corresponding negotiation strategies,use at the end of the operator's own examination pressure,change passive to active,gradually gain the initiative in the negotiations,finally use the mobile phone "buy-back" to avoid the sales return to the enterprise goodwill.At the same time,the combination of operators to assist the measures,successfully defuse the crisis.Subsequently,Z company participated in the bidding activities of telecom operators in Y province.In the procurement bidding project of QJ branch company,it was caught in the price war with competitors due to poor consideration of the site difficulties.The mobile phone sold by Z company is a new type of mobile phone developed by itself,while the mobile phone sold by its competitors is a second-hand refurbished imported mobile phone.Therefore,the price factor is the most unfavorable factor for Z company,resulting in the failure of bidding for this project.The negotiating team to defeat the reason of Z company,formulate the corresponding strategy of avoid price war,then in SM city branch of the mobile phone in project bidding,with the help of the local market research information,combined with the corresponding analysis method and the application of game theory,corresponding established perfect sales negotiation strategies,finally through the cities PCS mobile phone sales contract,solved the previous agent for sales of mobile phones to inventory problem.The case is based on the author's experience with business practices,from the perspective of business negotiation strategy,in combination with the SWOT analysis method in the enterprise management and the theory of Nash equilibrium of game theory,on the basis of the case involved a series of negotiations,step by step through the detailed analysis of the content of the case,from a view of Z corporation to deep mining the coping strategies in all negotiations,and analyzing the method and process of the strategy,and further explore of the strategy on the result of negotiations,studied and discussed based on non-cooperative game strategy method,It also summarizes the formulation process and principles and methods of negotiation strategies in the game process of business negotiation.Encountered in the real work of a lot of negotiation game,look from the surface is belong to the game of both sides "zero-sum game",but the actual demands careful analysis of the game of both sides,most of them seem to "zero-sum game" of business negotiations,is converted to " non-zero–sum games" and the conditions of the foundation,through to develop a suitable negotiation strategies in the process of game,can transform to achieve mutually beneficial win-win situation.It also conforms to the negotiation principle of "turning enemies into friends and win-win cooperation" widely advocated in business practice.