Competitive Negotiation

What is Competitive Negotiation?

Competitive Negotiation is a strategy where parties compete to claim maximum value, often used in one-time transactions with limited resources. This approach views negotiation as a contest where one party's gain typically comes at the expense of the other, focusing on distributing rather than creating value.

Key Principles

• Focus on claiming value rather than creating it
• Use of strategic information control and tactical maneuvers
• Emphasis on positions rather than interests
• Leverage power differentials when possible
• Aim for outcomes that favor your side

When to Use Competitive Negotiation

This strategy is particularly effective in situations where:

• Resources are truly limited (zero-sum situations)
• The relationship is not expected to continue
• Time constraints prevent more collaborative approaches
• The other party is using competitive tactics
• The stakes are high and compromise is not viable

Implementation Steps

1. Set ambitious targets: Start with high demands to create room for concessions
2. Control information: Share selectively to maintain advantage
3. Identify leverage points: Find areas where you have power or the other party has vulnerability
4. Use strategic concessions: Make small, calculated concessions to create reciprocity
5. Apply pressure tactics: Use deadlines, competition, or other forms of pressure
6. Maintain a strong BATNA: Be prepared to walk away if terms are unfavorable

Advantages and Limitations

Advantages:

• Can produce favorable short-term outcomes
• Effective in truly zero-sum situations
• Protects against exploitation by competitive counterparts
• Often requires less time than collaborative approaches

Limitations:

• Damages relationships and trust
• May lead to impasse or no agreement
• Misses opportunities for value creation
• Can escalate into destructive conflict
• May result in implementation problems due to resentment