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The Canadians failed to carry out competitor analysis. They also failed to carry out client audit and culture. These three aspects made the venture to fail. Competitor analysis entails a deep study on the number and types of competitors that one has top challenge. Upon the identification of the strengths and weaknesses of a competitor, the Canadians would have capitalized on the weaknesses. For instance, the Japanese equipment manufacturer could have sold the item at a lower price. Price differentiation if one way though which the Canadian team could have won. All they could have done was to set the price at a level lower than all other competitors. Cost differentiation is yet another means of beating the competitor. This is by using materials that cost less. Reduced cost of production ultimately reduces the price tag of a finished product.
The customer knowledge is another very important aspect of marketing. The Canadians should have known the type client whom they were dealing with. The client’s cultural orientation is one item that could have been known. This would have prepared the Canadians on the kind of treatment to expect. Client knowledge also helps the seller in setting the price. The two teams should also work on a joint program. A joint program would have reduced conflicts. The case study illustrated outright conflict from day one. The two teams should have arranged for all events through consultation. The Canadian team should have learnt some Chinese language before commencing the journey. Better still, the two teams could have arranged forma more neutral interpreter to oversee the negotiations. Thorough client and market study is very essential when organizing for any business negotiations.
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