Case Study of Volvo Marketing Strategy
Added on 2020-04-15
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Case –study: Volvo’s different Indian buses
Volvo 1Q1Generic competitive strategies for VolvoThere are many competitive strategies that can be that can be adopted by Volvo in order to excel in the market some of these strategies may include-Differentiation strategy – this strategy involve providing different products as well as servicesthat make the firm completely different from all the firms which belongs to same industry (Oxford, 2016). In such cases customer is also willing to pay extra money for the uniqueness of the product so, by this we can say that under this strategy target customer group become price-insensitive as a result, higher the number of additional features higher would be the costof the product as compared to non-differentiated items.AdvantagesCompany has full right to charge extra amount for the extra services from theirtarget customers.This will help the organisation in establishing supreme image in the eyes of the society.Firm can easily approach to all those number of suppliers which provide high quality of products (Rothaermel, 2015). It helped the organisation to build reliable customer base.DisadvantagesIt involves huge cost in the terms of research and development.Organisations always have to work under the pressure that anytime competitors can come up with the product which might be similar to their product.
Volvo 2Combination strategy – Whenever the organisation is planning to enhance its business they choose for combination strategy. As the name suggested it involve combination of two or more than two grand strategies like, stability, diversification, expansion and many more (Hollensen, 2015).AdvantagesIt becomes essential to identify strength and weakness of the firm at the time of combination strategy as, this will help in developing appropriate strategy to grasp the opportunity and to overcome the threats.Company can expand its business activities in the different geographical areas with the support of others firms after integration.DisadvantagesThere are chances of conflicts because of different opinion possess by the directors as well as the stakeholders. Differences may occur between the organisations because of diversity in the cultures of their employees. Further there are chances that overall financial stability ofthe firms can get affected by it.Focus strategy – this strategy lay down its major focus on wide recognition in the society. In order to establish image, organisation try to focus on their particular segment in spite of entering into all the areas (Krueger & Casey, 2014). Under this organisations try’s to differentiate it from their competitors. This strategy is also been used to provide market niches which helps the organisations in advertisement as well as in sales promotion.Advantages
Volvo 3Many experts are available in the market to offer goods along with the suitableservices.Customers get proper knowledge about the product during the campaigns organised by the firms DisadvantagesIf the selected target segment possesses the limited demand for the product then organisation may have to face many issues.Company just have to focus on the target market. Once it establish organisation, be sooner or later be able to expand it further.From the above analysis it can be said that although there are many generic competitive strategies but among all differentiation strategy, if adopted by the Volvo will help it to take its business to the great heights. There are many other organisation which are indulge in providing travelling services but still the people prefer trains over busses. However, if the VOLVO provides them something different then it will help the organisation in creating its unique image in the market.b)
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