What is Negotiation? Meaning with Examples of Negotiation

What is Negotiation Meaning with examples of Negotiation

Most of the business, company or organization go through the process of Negotiation in different ways and form, So it is very important to understand ‘What is Negotiation?’, in order to solve the issues or differences in a smooth and quality compromising manner.

Here you will learn about the ‘Negotiation Meaning’ with some real and practical ‘Examples of Negotiation’. 

Negotiation is a common process that almost everyone has gone through in some way or others. But not knowing ‘What is Negotiation?’, and How to Negotiate?can create real chaos, But in reality if you understand ‘What is Negotiation?’ or the Meaning of Negotiation and process to Negotiate, you will find that a quality Negotiation is an easy process and beneficial for both parties. 

Negotiation is a process of discussion between two or more parties for presenting a solution to an issue where both parties are benefited without damaging the relationship. 

It requires some important steps:

  • Preparation before the Negotiation
  • Discussing strategically
  • Analysing the issue and creating a goals
  • Negotiating with the purpose of  Win-Win Result
  • Reaching to right Agreement
  • Application of the Solution

Negotiation skills includes:

  • Listening skill  mean patiently without interrupting
  • Good command on verbal communication or speaking ability
  • Skill to understand the issue and analysing 
  • Problem solving skill 
  • Rapport building or relation building skill
  • Positive attitude toward the issue
  • Good decision Making skill
  • Dealing the challenges and presenting the solution


  1. Negotiation definition or meaning
  2. What is the purpose of negotiation?
  3. What is negotiation skills
  4. Negotiation process steps
  5. Types of negotiation skills
  6. Negotiating techniques
  7. Negotiation examples in business
  8. How negotiation skills is important
  9. What is negotiation skills in business workplace
  10. Final thought

1. Negotiation Definition or Meaning

Negotiation is a process of discussion between two parties over an issue, argument, dispute or business deal, where both parties try to avoid conflict and reach a compromise solution with a strategic discussion.

2. What is the Purpose of Negotiation?

The main purpose of negotiation is reaching a solution where two or more parties are mutually benefited without having conflicts.

A quality negotiation makes sure that both parties are in a win-win situation. 

Conflicts or arguments frequently result in almost every business or personal life, so dealing the situation wisely and successfully reaching a beneficial compromise is the main purpose of the negotiation. 

3. What is Negotiation Skills

The negotiation skills are the certain set of skills that help you to make a quality negotiation, Where neither you count loss or disadvantage nor your opponent party. 

Here are some strategic ways you need to develop in order to be a skilled negotiator. 

  • Skilled in listening patiently without interrupting
  • Strong and effective verbal communication
  • Analysing skill to understand the issue and making an analysation 
  • Problem solving attitude skill 
  • Skilled in Rapport building, where you understand and concern for others
  • Positive attitude
  • Decision Making skill
  • Skilled in dealing the challenges and finding the solution

4. Negotiation Process or Steps

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Negotiation must be accomplished through a process or steps that make the negotiation a successful one. 

Below given a negotiation process or steps to consider:

  • Preparation for the Negotiation
  • Strategic Discussion
  • Understanding the issue and creating a goals
  • Negotiating for a Win-Win Result
  • Setting up right Agreement
  • Applying the Solution

5. Types of Negotiation Skills

There are basically two types of negotiation skills:

  1. Distributive Negotiation
  2. Integrative Negotiation
  • Distributive Negotiation

In distributive negotiation two or more parties are engaged in an issue but only one party wants to make the most benefits, in spite of considering the other parties. 

As an example, a seller wants to sell at a higher price for the more profit and the buyer wants to pay the least price for more savings. 

This negotiation is like two monkeys fighting for a piece of cake and one one monkey wants to get the all.

  • Integrative Negotiation

In integrative Negotiation, negotiation works in an entirely different way, where two parties want to have a mutual understanding and want to share the benefit by creating a win-win situation. 

As an example, seller and buyer negotiate and reach a solution where both parties are benefited, no one is looser. 

This negotiation is like two monkeys sharing a piece of cake and both get benefitted. 

In this integrative negotiation, a long lasting relationship is focused and a quality cooperation and concern for others is practiced. 

6. Negotiating Techniques

  • Understand the real issue and analyse the matter and find the best solution to it.
  • Give time and do not hurry, a quality negotiation requires quality time, hurry during negotiation may lead to a poor result. 
  • Be willing to listen more than willing to speak, As it is said, that even a fool is considered wise when he shut his mouth and listens. 
  •  Be well prepared beforehand to deliver the right words during the discussion.
  • Always be willing to make a win-win situation, having selfish motives will only lead to a low quality or very poor negotiation. 
  • Show that you are willing to reach a solution where both parties are benefitted.
  • Don’t make the negotiation all about you and what you want, have a willingness of compromise. 
  • Goal to build a good relationship. 
  • Avoid arguments rather try to reach a problem solving decision. 

7. Negotiation Examples in Business

In 2011, there was a bitter dispute between Apple and Samsung, where Apple filed a case against Samsung for copying the design of their device. Then, Samsung blamed Apple back for not paying royalties for using its wireless transmission technology.

This blaming each other took more severe form and the number of courts involved in various countries to solve this issue. 

But the two companies were repeatedly accusing each other of copying the design and function of their devices.

Later the both companies wanted to compromise on the issue and they were at the California court.

But even though they were at the court, they could not reach a quality compromise and it resulted in a deadlock situation where there was no progress made for any solution. 

Both companies were refusing to back down from their arguments. The case later went to trial again, and Apple ultimately won more than $409 million.

8. How Negotiation Skills is Important

Negotiation skills are considered an important pillar for the businesses or organization, as good negotiations contribute significantly to business success and ultimate growth, whereas poor negotiation skill brings severe damage to the growth of a business by becoming a stumbling block.

Good negotiation skills also help you build better relationships with the other parties, which opens many other doors of opportunities in the future. 

Quality negotiation skills also avoid conflict or disputes and presents a mutual beneficial solution which is profitable for both parties. 

9. What is Negotiation Skills in Business Workplace

Every business needs to go through some sort of negotiation process with another party, where they need to settle the differences and disputes. Negotiation skills are applied to solve the issues and create a profitable solution, without losing the good relation with another party.

10. Final Thought on ‘What is Negotiation’

  • Negotiation is a part of individuals and businesses with the goal of a successful closing. A quality negotiation makes sure the both parties share benefit by a mutual understanding and compromise. 
  • Learning and developing the negotiation skills are highly demanded for the businesses as it makes a positive result of growth.
  • Preparation, wise discussion and finding the solution for mutual benefit is the key for good negotiation.

Let me know your suggestion in the comment section below for adding more life to this article for growing together and helping other to grow.

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