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Allow opponents to win the negotiation
In May 2003, Fate of N provincial telecom companies and so far completed the largest deal, a new type of value-added services mainly related to the procurement and operation of the terminal services. Although the Fate of the Company’s profit model of this new equipment and has a very strong faith, but even the most optimistic outlook for the calculation, the number of terminals in this procurement is too much, far beyond the province of the N level of economic development and the final the size of the consumer. The deal can be reached because the Fate of the company’s negotiator on the one hand spotted N Province, eager to break through the current telecom business psychology exaggerated the plight of the urgent new business prospects, the sole supplier on the other hand the use of dominant bargaining position will be product price and procurement was carried out unreasonable bundle. Finally, N Provincial Telecom scale and stand-alone purchase price of the double lure depressed, accepted this unrealistic purchases.
With predictable results. Excessive terminal input, on the one hand caused by huge amount of total investment, on the other stand-alone reduction in income, so that return on investment rate and the investment recovery period is far from being able to reach the promised requirements. To make matters worse, more than one third of the terminal equipment simply can not put into the market, can only be placed in the warehouse.
In such circumstances, N Provincial Telecom withhold partial payment after they were intolerable in 2005, requiring Fate of the Dragon’s original cost to recover the idle terminal equipment, and even been put into use as part of recovery should discount.
As for the Fate of companies, is almost unacceptable, because the price of this type of product market competition more than two years has fallen sharply, but two years ago, the old-type equipment is basically non-e
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