Module 2: Negotiation Styles and Strategies
Discover your negotiation style and learn when to apply different strategies for optimal outcomes in the Indian corporate landscape.
Learning Objectives
Identify the five major negotiation styles and their characteristics
Determine your own dominant negotiation style through self-assessment
Learn when each style is most appropriate in Indian business contexts
Practice adapting your approach based on different negotiation scenarios
What's Your Negotiation Style?
Just like how every person in your office has a unique personality, we all have our own natural negotiation style. Understanding these styles is like getting a new pair of glasses that suddenly makes everything clearer!
In India's diverse business environment, being able to recognize and adapt your negotiation style can be the difference between closing that important deal with a multinational client or watching it slip away to a competitor.
Remember Deepak from accounting who always finds a middle ground in team disputes? Or Priya from marketing who never backs down until she gets exactly what she wants? They're displaying different negotiation styles that we'll explore in this module.
The Five Negotiation Styles
Click on each style to learn more about when and how to use it effectively.
Collaborative
Win-Win approach that seeks mutually beneficial solutions where both parties achieve their objectives.
Competitive
Win-Lose approach focused on achieving your goals, often at the expense of the other party's interests.
Accommodating
Lose-Win approach where you prioritize the relationship and the other party's interests over your own.
Avoiding
Lose-Lose approach that involves withdrawing from the negotiation or postponing it to a later time.
Compromising
Partial Win-Win approach where both parties give up something to reach a mutually acceptable solution.
Style Comparison
Different situations call for different styles. No single approach works for every scenario.
Negotiation Styles Comparison
| Style | Best Used When | Risks | Example Phrase |
|---|---|---|---|
| Collaborative | Long-term relationships are important; complex issues with multiple interests | Time-consuming; requires trust and openness | "Let's find a solution that works for both our companies" |
| Competitive | When resources are limited; one-time deals; when you have power advantage | Damages relationships; can create resentment | "This is our best offer, take it or leave it" |
| Accommodating | When preserving relationship is more important than the outcome | Your needs may not be met; can create pattern of exploitation | "I understand your position, let's do it your way" |
| Avoiding | When issue is minor; emotions are high; more information is needed | Issues remain unresolved; tension may build over time | "Let's discuss this at another time when we have more information" |
| Compromising | When time is limited; when both parties have equal power | May leave value on the table; neither side fully satisfied | "If you can reduce the price by 10%, we can increase our order size" |
Real-World Examples from Indian Corporate World
Tata-JLR Deal: The Collaborative Approach
When Tata Motors acquired Jaguar Land Rover (JLR) in 2008, they faced skepticism about an Indian company managing prestigious British brands. Instead of imposing their management style, Tata took a collaborative approach.
They:
- Retained existing management teams
- Respected the brand heritage while providing financial stability
- Created joint committees for strategic decisions
This collaborative approach turned JLR from a loss-making entity to a profitable global brand, showing how win-win strategies can create long-term value.
Collaborative negotiation created a successful international partnership
Flipkart-Walmart Acquisition: The Competitive Edge
When Walmart was looking to enter the Indian e-commerce market, Flipkart's founders employed a competitive negotiation style to maximize value.
They strategically:
- Created a bidding war between Walmart and Amazon
- Leveraged their dominant market position as a bargaining chip
- Set firm terms for founder exit and company autonomy
This resulted in a $16 billion deal - one of India's largest acquisitions - demonstrating when a competitive approach can yield maximum financial returns.
Competitive negotiation created maximum financial value
Airtel-Telenor Merger: The Compromising Solution
When Bharti Airtel acquired Telenor India in 2017, both companies used a compromising style to reach an agreement that addressed core concerns.
The negotiation involved:
- Airtel taking on Telenor's spectrum liabilities but gaining valuable customers
- Telenor exiting a challenging market while maintaining some brand presence
- Both sides adjusting initial positions on valuation and terms
This compromise allowed a faster deal completion in a rapidly changing telecom landscape, showing how partial concessions can lead to practical solutions.
Compromising approach helped both companies achieve core objectives
Interactive Activity: Match the Scenario to the Style
Drag each scenario to the most appropriate negotiation style. Think about which approach would work best in each situation.
Scenarios
Negotiation Styles
How to Choose the Right Negotiation Style
Key Factors to Consider
Relationship Importance
How important is your ongoing relationship with the other party?
Time Constraints
How much time do you have to reach an agreement?
Power Dynamics
What is the balance of power between the parties?
Decision Framework
To choose the most effective negotiation style, ask yourself these questions:
-
What are my priorities in this negotiation?
Rank the importance of relationship, outcome, and time.
-
What's at stake for both parties?
Consider the consequences of reaching or not reaching an agreement.
-
What's the cultural context?
In Indian business culture, relationship-building is often valued over immediate results.
-
What style is the other party using?
Adapting to or complementing their approach can be strategic.
-
What's my BATNA (Best Alternative To a Negotiated Agreement)?
Strong alternatives give you more flexibility in your approach.
Pro Tip: The most effective negotiators adapt their style during negotiations based on how the conversation evolves. Flexibility is key!
Real-World Application
Ravi, a procurement manager at an Indian IT company, was negotiating a software license renewal. While he initially took a competitive approach to drive down costs, he noticed the vendor representative becoming defensive.
Recognizing the need to preserve the relationship for ongoing support, Ravi shifted to a more collaborative approach, focusing on value-added services rather than just price. This flexibility resulted in a better overall deal than pure price negotiation.
Self-Assessment Quiz: What's Your Natural Negotiation Style?
Answer these questions honestly to discover your default negotiation approach. There are no right or wrong answers - this is about self-awareness.
1. In a disagreement, I typically:
2. When I'm in a negotiation with a colleague, I focus most on:
3. When discussing a project timeline with a team member:
4. When negotiating my salary in a job offer:
5. When there's conflict in a meeting:
Module Summary
Key Takeaways
The five negotiation styles - collaborative, competitive, accommodating, avoiding, and compromising - each have specific uses and contexts where they're most effective.
Your choice of negotiation style should be strategic, not habitual, and based on factors like relationship importance, time constraints, and power dynamics.
Successful Indian businesses like Tata and Flipkart have used different negotiation styles to achieve specific strategic objectives in different situations.
The most effective negotiators can adapt their style during the course of a negotiation based on how the conversation evolves.
Quick Revision
- Collaborative: Win-Win approach, seeks mutual benefit, best for long-term relationships and complex issues
- Competitive: Win-Lose approach, focuses on your goals, best for limited resources and when you have power
- Accommodating: Lose-Win approach, prioritizes relationship over outcome, best when the issue is more important to others
- Avoiding: Withdraws from negotiation, best when emotions are high or the issue is minor
- Compromising: Partial Win-Win, both parties give up something, best under time pressure or with equal power
Prepare for Next Module
In the next module, we'll explore Communication Techniques in Negotiation. You'll learn:
- Effective questioning strategies to gather information
- Body language interpretation in Indian business contexts
- Active listening techniques to build rapport
- How to frame proposals for maximum impact