Volvo Group's Business Model: Innovation and Sustainable Development

This essay examines Volvo Group's approach to innovation and sustainable business development, focusing on its business model and key components such as value proposition and resources. It discusses the role of disruption in business, highlighting both its potential benefits and risks, particularly in the context of Volvo's connected car initiatives. The analysis emphasizes Volvo's position as a leading brand in the market, leveraging technology and human resources to drive output and achieve growth. The conclusion underscores the importance of a robust business model for Volvo to maintain market success and address its operational challenges, supported by a range of academic references.

Innovation and
Sustainable Business
Development
Volvo Group, Sweden

What is Business model
 It is successful operation of business
 With use of resource
 By identifying revenues
 And increasing customer base

Disruption: Good or Bad
 Disruption is use of innovation and technology in the business.
 Business model becomes efficient with use of disruption.
 Can become bad if not used wisely like in case of connected
cars of Volvo (Vermesan, & Friess, 2013).

Volvo Group
 Volvo is a car manufacturing
organization formerly based in
Sweden.
 The company is biggest revenue
producing organization of Sweden.
 (Volvo, 2018)

Business model Canvas

Key Components
Value Proposition:
It is the leading brand in
the market that provides
technological products
(Yang, et. al., 2017).
Resources and
capabilities:
The company has efficient
human resource that uses
technology to create
output.

Conclusion
Business model of Volvo will help
the company in attain growth and
success in the market and resolve
their incompetency as well.

References
 Börjesson, S., Elmquist, M., & Hooge, S. (2014). The challenges of innovation capability building: Learning from
longitudinal studies of innovation efforts at Renault and Volvo Cars. Journal of Engineering and Technology
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 Clinton, L., & Whisnant, R. (2018). 22 Business Model Innovations for Sustainability. Managing Sustainable
Business: An Executive Education Case and Textbook, 467.
 de Jong, M., & van Dijk, M. (2015). Disrupting beliefs: A new approach to business-model innovation. McKinsey
Quarterly.
 Gobble, M. M. (2014). Business model innovation. Research-Technology Management, 57(6), 58-61.
 Leminen, S., Westerlund, M., Rajahonka, M., & Siuruainen, R. (2012). Towards IOT ecosystems and business
models. In Internet of Things, Smart Spaces, and Next Generation Networking (pp. 15-26). Springer, Berlin,
Heidelberg.
 Martins, L. L., Rindova, V. P., & Greenbaum, B. E. (2015). Unlocking the hidden value of concepts: a cognitive
approach to business model innovation. Strategic Entrepreneurship Journal, 9(1), 99-117.
 Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. New Jersey: Wiley (the unit textbook). The
textbook is available from the CQUniversity library for free.
 Svahn, F., Lindgren, R., & Mathiassen, L. (2015, January). Applying options thinking to shape generativity in
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International Conference on (pp. 4141-4150). IEEE.
 Svahn, F., Mathiassen, L., & Lindgren, R. (2017). Embracing Digital Innovation in Incumbent Firms: How Volvo
Cars Managed Competing Concerns. Mis Quarterly, 41(1).
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integrated ecosystems. River Publishers.
 Yang, M., Evans, S., Vladimirova, D., & Rana, P. (2017). Value uncaptured perspective for sustainable business
model innovation. Journal of Cleaner Production, 140, 1794-1804.
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Management : JOM, 37(4), 1019-1042.