Coorperation and Compromise of Distributors: A Case Study on Negotiation Model of WPG Holdings Limited
Date Issued
2010
Date
2010
Author(s)
Hu, Cheng-Yang
Abstract
Distributors is provide the bridge of upstream suppliers and downstream consumers, but the value of the distributors has been note until recent years, but only noted the channel B to C, such as 7-11, Synnex, etc. The added value of B to B has been a question, especially with transparency of information between upstream and downstream. WPG is in such an environment, so we in to a situation that be asked a lot but low-margin, high-input but not gain. In such circumstances, the distributors should demonstrate their value, but also constantly interaction with the upstream, downstream and peer, this interaction includes the use of game design and negotiation.
This research found:（1）The game between distributors and upstream or downstream always have the next round, so the both side of the game often accept a compromise, in particular the distributor side, as has long been rarely found value in their business model. Therefore, distributors often can not insist their position, and become dependent on the rivals’ attitude but not the efforts during the negotiation process. However, a good preparation could not only achieve a favorable position in the negotiations, but also demonstrate their value. To determine the company’s value is important to whether to get identify and game design. This is the most lacking in the distributor industry. WPG Holdings is the largest distributor in Taiwan, though could not help that, not to mention other distributors must also face this problem. This is the fundamental issue during the process of negotiations, but also the biggest obstacles of negotiation between distributors and upstream or downstream.（2）In this case, both side of the negotiations are aware that it is a part of continual match. Although, it often happens one side of the game is stronger, and oppresses another side to accept its non-rational manner and the method. But will mot always carry of toward the direction of both-lose, that is, someone compromises in the negotiation (usually is the weaker side). Mostly, the distributors threat or will pick the brinkmanship can obtain better effect, thus it may be known, the participant of negotiation may request mutually to paly game theory and negotiate under reasonable or the rational situation, this the only way to achieve common sense from communication.
Subjects
Game Theory
Negotiation
Distribution Industry
Type
thesis
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