Segmental Bidding’s Strategic-A Bid Program to Lay Submarine Optical Cable
Date Issued
2016
Date
2016
Author(s)
Yang, Yi-Chih
Abstract
In the past manufacturers of integrated systems have come up against the challenge of segmented bidding on projects mostly involving large-scale and highly complex components. This study analyzes how to apply a new win-win strategy that will identify the most appropriate partners to participate in a bid team. It follows up by using decision tree analysis to determine the best competitors as far as price goes in seeking to win a tender. Finally, it looks at an actual case regarding submarine cable in which the author was involved, as an example for various manufacturers to learn from when organizing a tender offer. Since various manufacturers participating in a multiple-partner tender bid must all meet the qualifications listed in the customer specifications and must also cooperate in order to make the largest concessions possible on price, they all need to develop a common strategy to put together an offer that will win the tender. Bids on large-scale projects generally involve segmented participation, in many cases simply to weed out speculative bidders. Many different kinds of products are needed in such projects, and integrated systems manufacturers participating in such competitions must seek out suppliers who can work well with each other. Conversely, the various smaller suppliers are looking for systems integrators who can put together winning bids. This process leads naturally to internal competition and complex relationships that are also an important part of the strategy for winning tenders. Chapter One of this study looks at the background of system integrators. Chapter Two follows with an overview of the theory of competition, win-win negotiation strategies and decision trees; while Chapter Three explains some of the key rules followed in making segmented tenders; and Chapter Four analyzes a number of strategies used in competing for bids. In the case involving submarine cable, for example, an empirical analysis of the strategies described above eventually comes to the conclusion described in Chapter Five: system integrators currently working in Taiwan need to find the most suitable partners available to compete in tenders, and they must utilize a combination of strategies rather than attempting to win a tender simply by submitting the lowest bid. Relying on price alone makes it very difficult for a company to manage a profit; what is needed is experience in participating in tenders as well as skill in analyzing and integrating data in order to survive in the game of bids and tenders. Finally, various systems integrators need to think about how to make the best use of existing resources and other providers to beef up their odds of winning in a standard bid process. They must also consider which team of manufacturers will be best for their own interests if indeed they do win the tender. Thus the following research is offered as a guide for manufacturers participating in future tenders, to find the best strategy and increase the company’s success rate in competing in tenders.
Subjects
segmented tenders
new win-win negotiating model
price competition
competition
decision tree
SDGs
Type
thesis
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