Opportunities for Volvo in the European Electric Car Market

New business
opportunities and
product life cycle

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Company overview......................................................................................................................3
Pestle analysis..............................................................................................................................3
Porter five forces analysis............................................................................................................5
Product Life Cycle.......................................................................................................................5
Porter’s value chain model..........................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................8

INTRODUCTION
Electric cars the further energy sector have been the fundamental change within the road
transport for achieving their long-term objective for the low transitions of low carbon European
economy. On the other hand, European union is the considering the automaker with the stimulus
level of packages in order to have the boosting the electric vehicles sales in the company leaving
the diesel and gasoline vehicles behind. This considered to be the opportunity for Volvo to enter
the markets and capture the large market share with it technology. This report will have the
strategic analysis of the European market which is helpful in developing policy and strategic
decision.
MAIN BODY
Company overview
Volvo cars have the aim pf the becoming the global diversified level of mobility service
providers with their new ownership, access and the new level of attractive services as per the
need and demand of customer. As in the Europe, the company have the identical of potential
market in Europe who have aim to achieve the long-term objective for the low transitions of low
carbon European economy. Volvo, one of the dealing world manufacture of automobile industry
is the taking electrification in the industry as with the commitments for changing the world
innovation level and demand of powered, fuel efficiency and environmental friendliness. This is
driving the broader ranges of the hybrids and fully battery electric models in order to improve the
future and entire portfolio of vehicles into electrification.
Pestle analysis
Political factor
Volvo have the stronger level of sales in the Asian market as this market states t be strong and
stable for company sales (Gómez Vilchez and Thiel., 2019). The political instability of Europe is
making company have lack in control as this turn to be negative of Volvo to expand in Europe.
On the other hand, the country current level of resolution with the fundamental change in road
transport for achieving long-term objective in low transitions for low carbon European economy.
Hence, this turned out to be golden opportunity for the company in order to launch the
electrification car in the European market.
Economic factor
3

In Europe, the major level of recession has been passed in Europe which have the increase the
foreign vehicle brands with effective massive saturation in market. So, there is need to have the
targeting of the niche market which is based in the luxury, reliability and electric sector as
example (Vialetto , Noro and Rokni., 2017). On the other hand, the economy of the of Europe is
table which is more important for electrical sector. Hence, the Volvo can be benefit in both
online which is affordable prices and the luxurious one in order to have improvement of
diversity.
Social factor
The European market have been saturated with all type of market which are ranging from trucks
form being unattractive but having the more level of reliability in order to be tech fused and
luxurious in perfect manner. So, the Volvo want to strive out to be unique by rising the eco-
friendly automobile resources by leaning towards the manufacturing of electric car markets. The
car introduced by tesla; the competitor of Volvo has been considered to be out of budget
(Brannestam and Josefsson., 2018). Still the Volvo have the opportunity to arise the offer and
benefit form the government for offering the low middle-class electric car options and forces
competitive against Tesla.
Technological factor
The younger generation want car to be decked out to technology which have expensive and
unique in the market. The rapid level of change in technology is masking the car obsolete within
six months. So, the Volvo is trying to add more values to technology by electrification which
will be increase the intrinsic vale for longer periods of times. Volvo want to be leaders before the
market is been taken off by the other competitors and expiscating drive shift.
Environmental factor
The firm is trying to have investments in the electric and hybrid electrical automobiles which
have low to zero impact on environments (Chodakowsk., 2018). Hence the Volvo have urge to
focus on manufacturing there to electric lines as developing the vehicle energy efficient and
growing of environment friendly community growth.
Legal factor
Company is basically looking for their conjoined speciality to work for the quality and safety
level of regulations as the vehicle sent aims to be reach to purpose in effective and efficient way.
the firm is successful in making the proper level; of following of procedure as per the labour
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