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Analysis of Business Negotiation Strategy Application -Taking Nike as an Example
- 1 Shanghai Business School
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Abstract
Nike has released its 2020 Impact Report, which reviews the achievements in the fiscal year 2020 and the achievement of previously set five-year (2016-2020) goals. Although the set goals were well underway, the company's Annual Earnings report was not satisfactory. Nike failed to meet its projected revenue of $50 billion set for 2020, so this paper analyzes and suggests how the company can effectively negotiate with organizations and customers based on Nike’s interests and positions of different footwear products. Based on the growth-share matrix, Nike's footwear products are divided into four categories and how Nike shall negotiate pricing is analyzed in turn. This paper can concludes from the analysis of the four categories of footwear products that both interest-based negotiations and position-based negotiations represent Nike's overall interests. In interest-based negotiation, market research should be conducted to understand the demand for each product, and prices should be set accordingly to maximize revenue without losing customers. In position-based negotiations, the most important thing to grasp should be the hard indicator of profitability. When negotiating, Nike should set a fixed price for each product based on its own needs and goals. This price must be determined based on factors such as production costs, profit margins and product positioning. Therefore, in negotiations with suppliers and customers, Nike can change Nike's footwear pricing strategy according to its own interests and position.
Keywords
Nike, interest-based negotiation, position-based negotiation, growth share matrix
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Cite this article
Sun,Q. (2023). Analysis of Business Negotiation Strategy Application -Taking Nike as an Example. Advances in Economics, Management and Political Sciences,31,234-239.
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