Strategy Management - A Case Study of Volvo Trucks

This report discusses the implementation of strategic management tools on Volvo Truck Corporation, including Ansoff Matrix, competitor analysis, GAP analysis, McKinsey 7S framework, Porter's Five Forces analysis, scenario planning, SWOT analysis, and value net.

Running head: STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Name of the Student
Name of the University
Author Note

1STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
EXECUTIVE SUMMARY
The following report dealt with the implementation of the strategic management tools on Volvo
Truck Corporation. The report discussed the various strategic management tools like the Ansoff
Matrix, the competitor analysis, the competitive intelligence, the GAP analysis, the McKinsey 7S
framework, the Porter’s Five Forces analysis, the scenario planning, the SWOT analysis and the
value net on the Volvo Truck Corporation.

2STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Table of Contents
Introduction..........................................................................................................................3
Porter 5 Forces Model.....................................................................................................3
GAP Analysis..................................................................................................................3
Competitive Intelligence..................................................................................................4
SWOT..............................................................................................................................4
McKinsey 7S Framework................................................................................................5
Scenario Planning............................................................................................................5
Competitor Analysis........................................................................................................5
Ansoff Matrix..................................................................................................................6
Value Net.........................................................................................................................6
Conclusion...........................................................................................................................7
References............................................................................................................................8

3STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Introduction
The following report deals with the implementation of the strategic management tools on
the organization that the given case study deals with. The report deals with the implementation of
the various strategic management tools like the Ansoff Matrix, the competitor analysis, the
competitive intelligence, the GAP analysis, the McKinsey 7S framework, the Porter’s Five
Forces analysis, the scenario planning, the SWOT analysis and the value net on the organization
in discussion, the Volvo Truck Corporation.
Porter 5 Forces Model
The concerned company in discussion, Volvo Truck Corporation, faces a low threat from
the new entrants due to a high control over the distribution and the procurement of the raw
materials. The major buyers of the company are the consumers of the industry therefore leading
to the lower bargaining power in case of the clientele. The bargaining power of the suppliers are
however on the moderate level due to the materials that they supply1. The substitution threat that
is faced by the company is low due to the absence of the proper number of the manufacturers of
heavy trucks. However, owing to the low growth rate, the company faces a high industry rivalry.
1 Zhao, Zhen-Yu, Jian Zuo, Pan-Hao Wu, Hong Yan, and George Zillante. "Competitiveness assessment of
the biomass power generation industry in China: A five forces model study." Renewable Energy 89 (2016): 144-153.

4STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Figure 1: Porter’s Five Forces Model
Source: Created by Author
GAP Analysis
The company in discussion has been facing a huge decline in the manufacturing of the
trucks and the sale of the products2. The company is known to be facing certain issues in the
development of the issues that are presented due to the increase in the number of sales among the
buyers who belonged to the small trucking companies that were majorly owned by the single
families thereby leading to a decline in the bulk sale of the products of Volvo Truck Corporation.
2 Omachonu, Vincent, Jerry Haar, and Daniel Berg. "Assessing quality in professional services: a
framework for gap analysis." International Journal of Transitions and Innovation Systems 5, no. 1 (2016): 4-19.
Industry Rivalry
Threats of New Entrants
Threat of Substitution
Bargaining power of BuyersBargaining power of
Suppliers

5STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Competitive Intelligence
The company in discussion should be advised to conduct surveys on the buying behavior
of the major companies that might be interested in the buying of the trucks on a larger scale. This
would lead to the increase in the generation of the revenue for Volvo Truck Corporation. The
company should also look out for the deregulation and the other changes of the policies within
the global markets wherein the company has been operating3. This would help the company to
plan the future courses of action for the generation of the higher amount of the profit for the
company.
SWOT
The major strength of the company lies in the presence of a higher brand value within the
given industry. The major weaknesses of the company however lie in the low amounts of
creativity as is depicted within the market strategy that is adopted by the organization and the
fact that the concerned company has always followed the path that was laid down by the
predecessors4. The company faces a huge amount of opportunity in the rebound of the demand of
the products that are manufactured by the company in the market of the United States5. The
major threats that are faced by the company however refer to the difference in the demands of
the clientele present in the markets of Europe as compared to those in the United States.
McKinsey 7S Framework
The company in discussion has been observed to behold a strategy of safety that is
incorporated within the products. The safety feature is one of the most attractive features that
3 Shujahat, Muhammad, Saddam Hussain, Sammar Javed, Muhammad Imran Malik, Ramayah Thurasamy,
and Junaid Ali. "Strategic management model with lens of knowledge management and competitive intelligence: A
review approach." VINE Journal of Information and Knowledge Management Systems 47, no. 1 (2017): 55-93.
4 Solvell O , 2006. " Volvo trucks (A): penetrating the U.S. market " Harvard Business school 1-17.
5 Bull, Joseph William, N. Jobstvogt, A. Böhnke-Henrichs, A. Mascarenhas, N. Sitas, C. Baulcomb, C. K.
Lambini et al. "Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services
framework." Ecosystem Services 17 (2016): 99-111.

6STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
helps to distinguish the company from the others in the market. The company should also
restructure the decision-making process in order to stay put in the present global market. The
company should also encourage the growth in the employee engagement6. The company should
promote the involvement of all the stakeholders of the company which in turn would lead to the
growth in the popularity of the concerned company. The company should further focus on the
encouraging the employee to present their own ideas towards the betterment of the market
position of the company. The staff members of should be treated with equality and be trained in
the various necessary spheres required for the proper improvement of the company.
Scenario Planning
The scenario analysis of the company reveals the fact that the company needs to improve
on the low amounts of creativity as is depicted within the market strategy that is adopted by the
organization7. The company should also pay the needed amount of attention while catering to the
clientele based in the United States and those that are based in Europe. This is due to the
difference in the tastes of the concerned clientele.
Competitor Analysis
The major competitors of Volvo Truck Corporation refer to the companies of Daimler,
Volkswagen and PACCAR. The company might be advised to consider the various issues that
are presented by the internal and also the external factors for the maintenance of a better
competitive advantage within the territories of the several global markets wherein Volvo Truck
6 Ravanfar, Mohammad Mehdi. "Analyzing Organizational Structure based on 7s model of
McKinsey." Global Journal of Management And Business Research (2015).
7 Betz, Frederick. "Strategic Business Models: Idealism and Realism in Strategy." (2018).

7STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Corporation features8. The company should promote the involvement of all the stakeholders of
the company which in turn would lead to the growth in the popularity of the concerned company.
Ansoff Matrix
Figure 2: Ansoff Matrix of Volvo Truck Corporation
Source: Created by Author
The above diagram represents the Ansoff Matrix of the company in discussion, the Volvo
Truck Corporation. The concerned company in discussion might be suggested to follow the
product development strategy9. This is due to the fact that the strategy of the development of the
products might help the company to meet the requirements of the concerned clients thereby
assisting in the improvement of the competitive advantage of the company in the international
markets.
8 Guo, Liang, Ruchi Sharma, Lei Yin, Ruodan Lu, and Ke Rong. "Automated competitor analysis using big
data analytics: Evidence from the fitness mobile app business." Business Process Management Journal 23, no. 3
(2017): 735-762.
9 Vignali, Claudio. "Sustainable Management; Model Building for Decision Making." CULTUR-Revista de
Cultura e Turismo6, no. 3 (2015): 11-18.

8STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Value Net
The concerned company in discussion is advised to deal with the proper identification of
the competitors of the company. The major competitors of the company refer to the other
automobile companies like Daimler, Volkswagen and PACCAR, who have been active in the
given market. The concerned management of the company is advised to look at the products
from the viewpoint of the clients of the organization in order to make improvisations in the
products as per the tastes of the target clientele10.
Conclusion
The above paper discusses a plethora of strategic management tools that might be
implemented for the planning of the future course of actions that would be undertaken by the
company. This in turn might help in the improvement of the competitive advantage of Volvo
Truck Corporation.
10 Mingyang, Zhu, and Lin Zihua. "A Review of Foreign Research on Value Logic in Business
Model." Science & Technology Progress and Policy 1 (2015): 029.

9STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
References
Betz, Frederick. "Strategic Business Models: Idealism and Realism in Strategy." (2018).
Bull, Joseph William, N. Jobstvogt, A. Böhnke-Henrichs, A. Mascarenhas, N. Sitas, C.
Baulcomb, C. K. Lambini et al. "Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework." Ecosystem Services 17 (2016): 99-111.
Guo, Liang, Ruchi Sharma, Lei Yin, Ruodan Lu, and Ke Rong. "Automated competitor analysis
using big data analytics: Evidence from the fitness mobile app business." Business Process
Management Journal 23, no. 3 (2017): 735-762.
Mingyang, Zhu, and Lin Zihua. "A Review of Foreign Research on Value Logic in Business
Model." Science & Technology Progress and Policy 1 (2015): 029.
Omachonu, Vincent, Jerry Haar, and Daniel Berg. "Assessing quality in professional services: a
framework for gap analysis." International Journal of Transitions and Innovation Systems 5, no.
1 (2016): 4-19.
Ravanfar, Mohammad Mehdi. "Analyzing Organizational Structure based on 7s model of
McKinsey." Global Journal of Management And Business Research (2015).
Shujahat, Muhammad, Saddam Hussain, Sammar Javed, Muhammad Imran Malik, Ramayah
Thurasamy, and Junaid Ali. "Strategic management model with lens of knowledge management
and competitive intelligence: A review approach." VINE Journal of Information and Knowledge
Management Systems 47, no. 1 (2017): 55-93.
Solvell O , 2006. " Volvo trucks (A): penetrating the U.S. market " Harvard Business school 1-
17.

10STRATEGY MANAGEMENT - A CASE STUDY OF VOLVO TRUCKS
Vignali, Claudio. "Sustainable Management; Model Building for Decision Making." CULTUR-
Revista de Cultura e Turismo6, no. 3 (2015): 11-18.
Zhao, Zhen-Yu, Jian Zuo, Pan-Hao Wu, Hong Yan, and George Zillante. "Competitiveness
assessment of the biomass power generation industry in China: A five forces model
study." Renewable Energy 89 (2016): 144-153.