Strategic Analysis of Volvo's Global Business Challenges and Concepts

This report provides an executive summary and detailed analysis of the global business challenges faced by Volvo, a prominent player in the automotive industry. It explores how changes in global factors, such as environmental concerns and political regulations, have reshaped business concepts, particularly in the context of hybrid car development. The report highlights Volvo's strategic responses, including its focus on hybrid and concept cars, market expansion, and the development of effective marketing strategies to attract customers in a competitive global environment. The analysis covers the company's market share, its adaptation to changing customer preferences, and the impact of global issues on the automotive sector. The report also examines Volvo's marketing strategies, including digital marketing and dealership networks, and discusses the company's plans for future growth, including collaborations with tech companies and expansion into new markets, such as buses and trucks. The report concludes with a discussion of key global issues, such as foreign regulations, currency rates, communication challenges, payment systems, environmental concerns, and competition, and proposes future strategies for Volvo to maintain and enhance its position in the global market.

Issues in Global Business
and Strategic Concepts

EXECUTIVE SUMMARY
In this report it is shown that how changes in global factors has lead to change in business
concept in auto mobile sector. Besides this, it is describes that how Volvo is able to make
changes in their products due to this change. It has focused on developing hybrid and concept
cars. For this company needs to develop effective strategies so that it can promote and attract
customers. Along with this, it is also shown that how Volvo can use different strategies in order
to promote their business concept. What will be beneficial for them and what will not is
described in this report.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY:.................................................................................................................................3
Issues in the global business.......................................................................................................6
CONCLUSION..............................................................................................................................10
Recommendation...........................................................................................................................10
REFERENCES :............................................................................................................................12

INTRODUCTION
In order to gain an effective success in the competitive business environment, company
have to adopt several kinds of strategies and tactics so as it can overcome negative impact of
factors of business environment. The current report provides the detail knowledge and
understanding about the global business issue which faced by Volvo company. As it is already
having a large market share European and China market. Several strategies to overcome global
challenges have been also addressed in this report.
MAIN BODY:
Volvo is a Swedish car maker company headquartered in Torslanda in Gethenburg. It
produces high class cars with attractive designs. The company is already having a large market
share European and China market. It has already started contributing towards protecting the
environment by producing fuel efficient car (Crane and Matten, 2016). It has focused on
improving the quality of car by developing hybrid cars. As said by the company CEO, till 2019
company will only produce hybrid cars. They are aiming to cover the global market in hybrid
cars. This has transformed the mission and vision of company. Along with this, Volvo will be
focusing on developing markets where they are having a little market share. The present strategy
of Volvo targets high class people who are living luxury lifestyle and can afford to purchase their
product.
The car industry is one of the most conservative. It has been evolved since 19th century.
There has occurred many changes in this industry that has allowed frequent modifications. Due
to this customer taste and preference is also changing. It is expected that concept of car will be
very different in the future (Morschett, Schramm-Klein and Zentes, 2015) Companies will
focus on producing hybrid cars to protect environment. Due to change in global issues the auto
mobile sector is highly affected. This is because of rise in pollution and other factors that has
forced auto mobile companies to focus on hybrid cars. This is reason why most of the companies
are entering in hybrid sector. They have started building alliances with small companies in order
to produce hybrid cars. For example- TATA has manufactured their first hybrid car, also tech
company Apple will en entering in this. Moreover, Tesla has already started their production.
Another global factor that has led to change business concept is change in political factors. The

government of many countries has now focused on controlling pollution. It has developed rules
in order to maintain quality of environment. They want to conserve their resources so that people
can sustain. These changes have allowed auto mobile sector to develop new business concept.
Global marketing strategy of Volvo depends on types of market in which they operate
(Casci and Boudreau, 2016) Specially they focus on quality and design that makes them one to
the best in the world. This feature of company has allowed them to build loyal customers all
around the world. Volvo focus on needs of people. They produce cars and maintain high quality
of product. Furthermore, continuous change in design has generated variety of products. Services
provided by Volvo also differs from other companies. It helps in increasing customer satisfaction
and retaining them. They provide free shipping of cars. Also, they provide tour package to
people in different countries.
From all this it can be stated that there will be very intense competition in auto mobile
sector in coming years. Beside this, it will force companies to invest huge amounts in research
and development field. Volvo uses different marketing strategies that helps them to attract large
number of customers (Grayson and Hodges, 2017). They use digital marketing, dealership, etc.
However, in markets like India, Volvo is not having enough market share. This is because it of
expensive car. Also, major population belongs to middle class families. The present global
strategy followed by Volvo is to gain market in luxurious sector in auto mobile sector. Their goal
is to obtain 10% market share in luxurious market. It has focused on improving their quality so
that more people can be attracted. It has benefited them in markets like India where company is
able to cover market.
But on the other hand the change in strategic concept will help in reducing pollution
level. It will also help in creating an eco friendly environment to live. The change in business
concept has highly impacted overall industry (Knight and Liesch, 2016). This has modified
overall operations of industry. Furthermore, rise in issues has allowed government to impose
some strict rules and regulations. Also, they are helping companies. However, some standards
are set by Volvo on which they will work. It will ensure proper quality of hybrid car. Apart from
this, Volvo needs an effective strategy to promote their car. For this Uber have already tied up
with Volvo. It has also attracted other tech companies to get involved with Volvo and
manufacture hybrid car and buses.

The current strategies followed by company includes acquiring tech companies that are
operating in auto mobile sector. This has resulted in modifying their process so that cost can be
reduced. Likewise, Volvo is able to produce concept cars. It has created opportunity for company
to expand their operations in different markets. Other than this company has already entered in
starting developing buses and trucks (Cascio and Boudreau, 2016.) This has given them extra
advantage in generating revenues. They are able to attain their goals and objectives. The present
global strategy followed by Volvo is to create a high class sector in auto mobile sector. It has
focused on improving their quality so that more people can be attracted. With this company is
able to create a good image in the market. Also, it has generating stable profits to compete with
brands like Volkswagen, Audi, BMW, etc. By this Volvo has emerged as luxurious car segment
company in auto mobile sector.

Issues in the global business
Global business is a procedure under which organization deal its item and administrations in the
in excess of one nation. While any firm consider on the global business exercises then it needs to
focus around the different worldwide business condition and additionally hones. As per the
research it has been found that Volvo is one of the popular auto mobile manufacturing
organisation which serves the high quality of product in the market. As it deals in the different
countries in the world so in every countries there are different factors and challenge that can
affect company's performance and business activities. (Botha, Kourie and Snyman, 2014. )
Following are some major global issue which may face by Volvo company in the international
business environment-
Foreign law and direction- Every nation have its own particular guidelines and control, set of
accepted rules and enactment. While any business go into the new market, it must examine its
political and legitimate business condition While Volvo go into the different market then it can
confront the issue identified with remote standards and direction which connected in every last
business exercises and exchange (Zhang and Huang, 2012). This is one of the major issue which
face by Volvo company in the international environment as different country have their own
regulation, rules and legislation so company have to understand different legal and political
environment in different countries.
Money rates-In the universal business condition, cash rate variance is another real test for the
association. Worldwide monetary unpredictability can make anticipating benefit particularly
troublesome, when rate vacillate at erratic levels. In the different country there are different
currency rate which can affect organisation activities and function.
Communication troubles and social contrasts- This is one of the significant issue for the work
business in the universal business condition. In each business association, compelling
correspondence medium is critical so as different practical division can adequately speak with
each other (Cai and Yang, 2014.). In the worldwide business condition, Volvo will confront the
issue related correspondence because of the distinctive culture, locale and dialects and so forth.
Real variance can genuinely affect the adjust of operational expense and benefit. In the different
countries, there are different languages and cultural environment that can affect the working of
Volvo. In order to gain effective success at the global environment, firm have to understand
different country's culture, region, languages, life style of people etc.

Universal payment system-This is another real issue for the Volvo which will work its business
in the Indian market. Therefore, recognizing and deciding worthy installment technique and
guaranteeing secure handling must be a focal thought for Volvo who tries to exchange globally.
It is very important for Volvo company to understand the universal payment system so as it can
cope up with changes in the global business environment.
World wide environmental issue-In the universal business condition, ecological issue is real
worry for the organization. In this way it is essential to know about the nation particular natural
control and issue related with the business (Tebert and et.al., 2014). As indicated by the earth
condition, climate, atmosphere, accessibility of characteristic assets, organization ought to work
its business exercises and capacities.
Competency-Competency is another significant segment in the business inside and outer
condition. It alludes to the capacity, capacity and upper hand of the organization through which
firm can build up its solid position in the market. According to the give contextual analysis of
Volvo corporate revitalisation activity that set another course for the organization. The three vital
column to new activity that set another course for the organization that is quality, systems,
internationalization. With help of these three skills, firm can successful perform at global market
and increase focused position (Waithaka and Ngugi, 2013). This is another one of the major
issue of the global environment which may face by the Volvo company in the international
working environment. Due to the global competition, company may face the issue regarding
business operation and activities.
According to the above talk it has been broke down that there are a few sorts of issues
which can look by the Volvo organization at the season of working worldwide business in the
universal business condition. These issues can influence organization in extensive way as its
execution and profitability can generally influence. It is very important for the Volvo company to
focus upon the issues in such effective way so as it can find out the best strategy for future. In the
future, company have main aim is to earn the maximum profitability and market share in the
global business environment and attract large numbers of customers (Grigor'ev and Suslova,
2014 ). Company actually desires to become one of the number one auto mobile firm in the
global environment. Thus, for address this objective, cited venture have to follow various future

strategies. Following are some future strategies that will help to Volvo company in the future.
These strategies are discussed below-
 Direct trading is offering specifically into the market. While any business undertaking
specifically trade its item and administrations then it is known as the immediate sending
out. While any organization manages coordinate trading, at that point they have set up a
business program swing to specialists and wholesaler to speak to them advance in that
market. This is another best procedure for business enter and development under which
firm does not requires to join with another organization . In this methodology, it is
imperative for organization that determination of specialist and merchant ought to be
fitting.
 It is another imperative market passage methodology for the Volvo through which it can
without much of a stretch enter and extend its business in the Indian market. It is a
specific type of organization that includes the formation of a third autonomously
oversaw organization (Asghar, 2013.). Under this methodology, two partnership
consent to cooperate in a particular market, either geographic or item and make a third
organization to attempt this. In a straightforward word one might say that any type of
affiliation which suggests coordinated efforts for in excess of a transient period is
known as joint wander.
 Volvo will focus on the digital technology and digital marketing strategy to face the
international challenges in the global business environment. With help of social media
strategy and digital marketing, company can easily introduce and promote its product and
service at global level an in various countries. In this strategy, company will develop its
own webpage on the internet and post creative advertisement regarding product and
services.
 HR is major vital alternative is it's profoundly expertise representatives which gives their
best commitment to accomplish its target. Human asset is a standout amongst other vital
alternative through which firm can increase high upper hand later on and actualize the
viable methodology to pick up the high piece of the pie in the worldwide market
(Schneider and Schmidpeter, 2012). By giving powerful preparing and advancement
chance to representatives, firm can support and inspire them for high efficiency and
productivity in the developing business sector. So as to build up the upper hand,

organization required high qualified and talented workers so as they can perform in well
way and achieve the target inside the time. In this aspect company will also organise
training and development program for its employees so as they can learn the criteria and
strategy to conduct business in the new working environment. With help of training and
development, corporation can easily improve skill, ability, capability of employees s as
they can perform in more effective and efficient manner at the global business
environment.
 In order to overcome the global business challenge regarding competition and several
factors of business environment Volvo will adopt future strategy regarding market
research and business environment analysis. Volvo organization will lead business
condition investigation for evaluate and break down its execution in the worldwide
business condition. With help of this methodology it can undoubtedly break down the
few segments of business condition, for example, political, social , social, innovative,
legitimate and so forth. This system help to refered to wander in creating powerful
business procedure so as it can contend and get by in the aggressive business condition.
Volvo will direct statistical surveying at worldwide level. As each nation have its own
monetary, political, social and social condition. In this way, it is imperative for firm to
evaluate and examine the economic situation so as it can recognize client taste,
inclinations, decision, necessity, culture, conduct, expectation for everyday comforts and
so forth. This technique organizations to convey the correct item and administrations to
clients as indicated by their prerequisite.
With help of market research and business environment analysis, company can easily overcome
the challenges which may occur regarding business factors. With help of market research and
business environment analysis, company can gain the knowledge regarding customer taste and
preferences, level of competition, political changes, legal changes, environmental and cultural
challenges etc. With help of this strategy, company can easily cope up with changes in the
international business environment.
 Improve product design and innovation is another one of the significant strategy for the
future for Volvo company (Kitzmueller and Shimshack, 2012). Cited venture will bring
some innovation and creativity along with its product and services through which it can
lead at global business environment. While company design something new and

innovative along with product and services then it helps to corporation in improving
market share and profitability at the global business environment. Continuous product
improvement and development is another effective future strategy to help to corporation
in overcome global issue. The continuous improvement in design of product and services
helps to company in attracting new customers and earn maximum revenue in the global
business environment.
 Volvo will adopt green product strategy for develop competitive advantages in the global
business environment. With help of green product, company can effectively consider
environmental issue of business.
CONCLUSION
From this entire report it has been concluded that global marketing strategy of Volvo
depends on types of market in which they operate. This feature of company has allowed them to
build loyal customers all around the world. Volvo focus on needs of people. They produce cars
and maintain high quality of product. In order to overcome the global business challenge
regarding competition and several factors of business environment Volvo will adopt future
strategy regarding market research and business environment analysis. It has been also
concluded that with help of CSR and green product strategy company can easily improve
competitive advantages and develop its own brand image in the global business environment.
Recommendation
Today’s global world has necessitated the firms to undergo a digital transformation in
their adopted business practices to enhance their market position. Considering this, digital
transformation is a must to improve the market shares where it together results in getting
engaged with the customers in the best possible manner. This helps in maintaining an interactive
approach with that to the clients and users by building a strong relationship with them and
increase their existing base of customers. This also leads to create a loyal set of consumers with
employees who are also principled towards the work and believes in operating with a productive
approach. Although, their together exists certain set of issues to companies operating at a global
level with a need of getting into a digitally transformation business. These challenges are also
needed to be resolved with some below detailed measures-

 Employee Pushback- This is on referring to the fact where accepting
change is an epitome of uneasiness for a large set of workers where they largely resist
from accepting the change in a positive manner. This becomes a matter of concern for
the employers where they are also required to keep the employees informed about the
change that they are considering to b ring within the organization. It will also keep
them involved in the entire process by assisting them to understand the significance of
change and favorably accept it.
Inadequate expertise for leading digitization initiatives- This is basically to combat the
challenging situations arising due to changed technical measures that also necessitates a
combined talent and technology for an effective digital transformation. It is hereby important for
the organization to train the workers and make them digitally literate by together hiring experts
for the same. This is also apparent to assist the entities in hiring right people at right position and
help them build effective skills of innovation