Question

Based on Amazon company. answer the following question.
Planning,Sales,Forecasting and Budgeting application criteria:
1. strategic planning and linkage to strategic marketing
2. efficient and effective sales strategy
3. forecasting approaches and methods of sales forecasting
4. purpose and process of sales budget.

distribution management (SCM)

Answer 1

1.

Amazon’s generic corporate strategy can be described as concentric diversification. This strategy is based on leveraging technological capabilities for business success and following a cost leadership strategy aimed at offering the maximum value for its customers at the lowest price in addition to wrapping its business around the customers wherein they find Amazon to be the go-to portal for their online shopping needs.

Indeed, this strategy has paid off well as can be seen from the fact that it is the world’s largest online retailer and has consistently been the leader in the market segments in which it operates. Having said that, it must also be noted that cost leadership can follow the law of diminishing returns wherein firms following this strategy find that they are unable to sustain growth or increase profitability once the “low-hanging fruit” are plucked.

2.

Prioritize Customer Service is the company's major sales strategy.

The Buy Box is Amazon's Holy Grail and the end goal of most successful Amazon selling strategies. It's commonly said that 90% of all Amazon sales are made through the Buy Box, and sellers who have won the Buy Box can often sell at prices 20% higher than their competitors.

3. Accurate time-series forecasting service, based on the same technology used at Amazon.com, no machine learning experience required.

4. The purpose of Amazon is to prioritize the customers and cover the requirements of the market.