Professional Documents
Culture Documents
Team Members:: Aamir Ansari SMBA13074 Himanshu Saigal SMBA13021 Krishna Priya SMBA13027
Team Members:: Aamir Ansari SMBA13074 Himanshu Saigal SMBA13021 Krishna Priya SMBA13027
PENETRATING THE US
MARKET
TEAM MEMBERS:
Aamir Ansari
SMBA13074
Himanshu Saigal
SMBA13021
Krishna Priya
SMBA13027
Case Contents
Volvo introduction.
Mission / Goals.
Trucking industry.
US / European market.
Major Players
Environmental factors.
Volvo Truck Group
Vertical/Horizontal growth
Volvo Business Approaches.
Volvo Market Growth/Decline
Case Questions
Recommendation.
Volvo Introduction
Global truck manufacturer based in Gothenburg,
Sweden.
World’s second largest heavy duty brand.
Volvo manufactured its first automobiles in 1927.
Volvo Group Trucks company include Renault
Trucks, Mack Trucks and UD Trucks (Nissan Diesel
Trucks).
Its main parts distribution centre is located in
Ghent, Belgium.
Among some smaller facilities Volvo has assembly
plants in Sweden (Gothenburg - also the Head
Office), Belgium, USA, Brazil, South Africa,
Australia, China, India and Russia, making it a truly
global producer.
Mission Goals
Establishing higher
throughout the value chain.
World truck industry
Heavy weight
Medium truck Light weight truck
GVW class 8
GVW class 5-7 GVW 1-4
or over 15 tons
Trucking Industry In Europe/US
US Europe
Conventional Cab – over
Trucks trucks
PEST Factors
Economic environment:
Social environment:
US market dominated by conventional trucks.
US have independent companies with small chains
selling different brands
Continued…
Political and Legal environment.
US Europe
Forward Integration:
No Exclusive Distributors
Choice of customers:
Trucking Companies
Construction Companies Distribution Companies
Specialized Builders
Major Brigadier customers
Choice of products:
American Conventional Trucks(VN and 770 series)
Medium Distance Delivery Trucks
White GMC
Integral Sleeper(Volvo White)
External Fit
Distribution
Independent Companies and Small Chains
Existing Distributors of Volvo and White Motor Corp.
Manufacturing/Assemblies
Cab Trucks Manufacturing in Ohio
Volvo White Assembly Plant in Virginia
Volvo Business
Approaches
Actions to upgrade, build or acquire competitively
important resources and capabilities
o Started producing major drive-train components,
including engines and transmissions
o Product Quality and manufacturing process were at par
with industry Standards
o Safety and Environmental Performance.
o Upgraded White Production plant of Cab in Ohio and
moved Utah Assembly Plant to Virginia.
o Acquired GM’s Heavy Truck business with
manufacturing plant.
Volvo Business
Approaches
Managing R&D , Production, Sales and marketing,
finance etc. :
o Established Volvo truck Finance North America in 1995
o Invested $500 million in Production, marketing &
Operational Changes to launch new VN series
o Improved Communication to convey changed ownership
and better quality.
o Reconsolidation of Dealer Network into three regions
with 240 Dealerships.
o Increased Production Capacity in 1995 to support sales
of over 30000 units per year.
Volvo Business Approaches
Actions to Gain sales and Market Share with lower
prices on lower cost.
o Increased Proportion of Volvo Engines results in:
Higher profit on Engines
After sales Service and Spare parts Revenue be
increased
Economies of scale to reduce cost in Engines
o Modular Concept reduced the costs of warehousing,
purchasing and shipping.
o Resulted in meeting with customer demands easily.
Volvo FSA’s: International Strategy
Technology: Efficient Engines and Driven components
Brand name-Volvo
Volvo Sales & Production
1998 12 39
2000 11 - 13
http://www.irs.gov/Businesses/Trucking-Industry-
Overview---History-of-Trucking
http://www.econlib.org/library/Enc1/TruckingDeregu
lation.html
http://www.youtube.com/watch?v=dMiKvLbYP
PE - THIS VIDEO COVERS ALL THE
FEATURES OF THE VOLVO TRUCKS
THANK YOU