A Comprehensive Strategic Analysis of Volvo Cars: A Report

This report provides a strategic analysis of Volvo Cars, examining its challenges, opportunities, and competitive position. It begins by identifying problems such as competition from global automotive giants, limited advertising, and the need for cost-effective car production. The report then delves into the external environment, analyzing socio-cultural trends, technological advancements, economic conditions, and government policies impacting the automobile industry. It further explores the internal environment, highlighting Volvo's strong partnership with Geely, its global presence, emphasis on quality and safety, and financial performance. The analysis also considers Volvo's competitors and its core values. Overall, the report offers a comprehensive understanding of Volvo Cars' strategic landscape, considering both internal and external factors affecting its performance and future direction.

Running head: STRATEGIC PLANNING AND MANAGEMENT
STRATEGIC PLANNING AND MANAGEMENT
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1STRATEGIC PLANNING AND MANAGEMENT
Problem/Opportunity facing the company:
When compared with international competitors, the company is facing some problems
such as lack of features. These markets are mainly dependent on the domestic Chinese market;
thus there are more sales but profit levels of the Volvo cars are less (Oberholzer-Gee, Shih & Dai
2019). Moreover, the company is unable to build inexpensive cars due to the existence of global
automobile giants. Additionally, there is a lack of advertising strategies and technical awareness
amongst middle-class people (Oberholzer-Gee, Shih & Dai 2019). However, there are some
opportunities for the company. One such opportunity is the successful and strong Geely-Volvo
partnership. Volvo buying more market shares is aiding its integration with present entities that
are involved in automobile businesses. Geely’s rising emphasis on New Energy Vehicles, global
expanding and diversification of the automobile market and buyers and the company is leading
to the concentrating on the “up-market” population segment.
External environment of the company:
The socio-cultural aspect includes the modifying perception of individuals towards
independent brands in China. Volvo has limited car speeds in a bid for zero deaths and the
company mainly focuses on the customer and vehicles safety. Smaller families and childless
couples are frequent buyers of the Volvo cars, and now people are more aware of the
environmental effects. Therefore, they are becoming more eco-friendly (Oberholzer-Gee, Shih &
Dai 2019). More eco-friendly technologies are being launched at an exponential rate. Fuel and
commodity prices are also rising day by day, and growth rates are flat in developed markets,
excellent prospects in emerging markets like Asia. In 2008, the economic recession hit the
automobile business massively. So many automobile companies have become bankrupt. When
the recession was over, people expected the recovery of the international economy. Still, the

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doubt remained high. Government foreign policies are an essential part of the automobile
industry (Oberholzer-Gee, Shih & Dai 2019). There are high tax policies in developing nations
for the protection of the local automobile industry. BRIC economies are improving their power
against the western world and also accidents involved with the autonomous vehicles which are
the part of legal challenges.
Internal environment of the company:
Geely’s strong partnership and collaboration with Volvo creates rising emphasis. Volvo
operates in over 120 nations, and they deal with a large number of customers. The company
concentrates on the quality, innovation, and design of cars which surpasses its sales growth year
to year. Through the marketing strategy, Volvo provides a particular segment which is useful.
Volvo provided the price which is involved in Research and Growth program. Cost-effectiveness
is the key advantage of Volvo Group (Oberholzer-Gee, Shih & Dai 2019). Volvo has so many
strong competitors such as Audi, Mercedes- Benz, BMW and Lexus. Volvo provides the safest
car in the market. Volvo takes the fourth financial position and makes a record in 2018 as per its
sales and profitability. Quality, environmental care, and safety are the values that design by the
Volvo Group and the benefits have a long tradition (Oberholzer-Gee, Shih & Dai 2019).

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Reference:
Oberholzer-Gee, F., Shih, W., & Dai, N. (2019). Zhejiang Geely Holding Group: Acquisition of
Volvo Cars.