Business Models - Volvo Group Case Study
Added on 2023-06-12
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Running head: BUSINESS MODELS 1
BUSINESS MODELS
Student Name
Institution Affiliation
BUSINESS MODELS
Student Name
Institution Affiliation
BUSINESS MODELS 2
A business model is a method that the company uses in order to generate more income
and also yield profits so as to achieve its goals and objectives (Zott, Amit, & Massa, 2011). The
business model provides guidance to the management of any firm on the techniques to employ so
as to earn more income and also for the continued success of the firm (Osterwalder & Pigneur,
2010). Once the best products to use are set, then the business plan is completed hence leading to
the creation of a business model. In this task, we are going to look at the business model of the
Volvo Group located in Sweden which is involved in manufacture and service of trucks and also
constructs equipment. We will review the business model of the firm, the resources, its
significance, value, and SWOT.
The Volvo Group is a manufacturing firm which produces buses, trucks, and construction
equipment. It also manufactures and supplies financial services, marine, and industrial drive
systems. It was created in 1927, serves worldwide and has over 90000 employees and the
products are sold in over 190 markets globally. The aim of the company is to be the best and
successful transport company in the whole world. How they interact with their customers and the
community as a whole is what drives them to achieve their desired goals and objectives. The
Volvo Group company has valued which guide them to day to day activities. They value
customer success, trust, passion, change and performance (Palo & Tahtinen, 2011). The business
model of Volvo Group is the best as compared to all the other manufacturing companies in the
world. This has led to its success in the market because they are able to fit the target customers
and also the market needs. The company ensures that they understand what the customer needs
and try to come up with techniques to meet their needs and this leads to the creation of more
profits. By using the business models, the company is able to identify the value proposition, the
target market and choosing the best technology in their daily operations. The business models in
A business model is a method that the company uses in order to generate more income
and also yield profits so as to achieve its goals and objectives (Zott, Amit, & Massa, 2011). The
business model provides guidance to the management of any firm on the techniques to employ so
as to earn more income and also for the continued success of the firm (Osterwalder & Pigneur,
2010). Once the best products to use are set, then the business plan is completed hence leading to
the creation of a business model. In this task, we are going to look at the business model of the
Volvo Group located in Sweden which is involved in manufacture and service of trucks and also
constructs equipment. We will review the business model of the firm, the resources, its
significance, value, and SWOT.
The Volvo Group is a manufacturing firm which produces buses, trucks, and construction
equipment. It also manufactures and supplies financial services, marine, and industrial drive
systems. It was created in 1927, serves worldwide and has over 90000 employees and the
products are sold in over 190 markets globally. The aim of the company is to be the best and
successful transport company in the whole world. How they interact with their customers and the
community as a whole is what drives them to achieve their desired goals and objectives. The
Volvo Group company has valued which guide them to day to day activities. They value
customer success, trust, passion, change and performance (Palo & Tahtinen, 2011). The business
model of Volvo Group is the best as compared to all the other manufacturing companies in the
world. This has led to its success in the market because they are able to fit the target customers
and also the market needs. The company ensures that they understand what the customer needs
and try to come up with techniques to meet their needs and this leads to the creation of more
profits. By using the business models, the company is able to identify the value proposition, the
target market and choosing the best technology in their daily operations. The business models in
BUSINESS MODELS 3
this firm are important because it provides the management of the firm with the right
justifications so as to ensure the client needs are met. According to Osterwalder &Pigneur, the
success of Volvo Group in the market is enhanced by the good marketing strategies (Osterwalder
& Pigneur, 2010). To ensure that the business model of this company succeeds, they apply the
contingency theory. The company has also employed fashionable management strategies for its
success and survival in the markets which are most times competitive. In this case, the Volvo
Group has allowed more partnerships, innovations and supply chains to be used in its operations
(Gebauer & Kowalkowski, 2012).
Due to the advancement in smart-connected products, opportunities and threats have
emerged in the Volvo Group business model (Kaplan,S., 2012).The opportunities includes that
the company aims at growing global road freight sector. Further, the company has an outlook for
a global trucks market by manufacturing new trucks, cars, buses and construction equipment.
The company also aims at improving global construction industry. There is also need for
partnerships, collaborations and alliances with other companies something which is an
opportunity for growth and expansion of the company. Additionally, there is an opportunity to
use advanced technology in the service motor industry.
On the other hand, there are threats related to Volvo’s business models. There is high
competition in the market by other firms which manufacture the similar product. Also, there are
problems and fluctuations in exchange rates which affect the businesses economic attempts to
advance its business operations in the global markets. Environmental regulations and policies in
various countries in which it operates also threaten the success of its business operations for they
are adverse. Finally, the manufacture of more improved vehicle features that are produced by
their competitors threatens Volvo’s competitiveness in the automobile sector.
this firm are important because it provides the management of the firm with the right
justifications so as to ensure the client needs are met. According to Osterwalder &Pigneur, the
success of Volvo Group in the market is enhanced by the good marketing strategies (Osterwalder
& Pigneur, 2010). To ensure that the business model of this company succeeds, they apply the
contingency theory. The company has also employed fashionable management strategies for its
success and survival in the markets which are most times competitive. In this case, the Volvo
Group has allowed more partnerships, innovations and supply chains to be used in its operations
(Gebauer & Kowalkowski, 2012).
Due to the advancement in smart-connected products, opportunities and threats have
emerged in the Volvo Group business model (Kaplan,S., 2012).The opportunities includes that
the company aims at growing global road freight sector. Further, the company has an outlook for
a global trucks market by manufacturing new trucks, cars, buses and construction equipment.
The company also aims at improving global construction industry. There is also need for
partnerships, collaborations and alliances with other companies something which is an
opportunity for growth and expansion of the company. Additionally, there is an opportunity to
use advanced technology in the service motor industry.
On the other hand, there are threats related to Volvo’s business models. There is high
competition in the market by other firms which manufacture the similar product. Also, there are
problems and fluctuations in exchange rates which affect the businesses economic attempts to
advance its business operations in the global markets. Environmental regulations and policies in
various countries in which it operates also threaten the success of its business operations for they
are adverse. Finally, the manufacture of more improved vehicle features that are produced by
their competitors threatens Volvo’s competitiveness in the automobile sector.
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