Volvo Company's Lean Startup Innovation Strategies

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Innovation and sustainable business
development
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Executive summary
The case study provides the information is related to lean startup the case study of Volvo
Company. Volvo is a multinational company in Sweden which deals with supply and sales of
buses, trucks and so on. This case study will provide brief information about innovation
strategies as the innovation strategies are the most necessary part of organizational structure. The
report will also discuss the innovation trends and the value of innovation which are necessary for
organizational growth. It also helps to determine the impact of innovation in the growth of
organization the case study of Volvo helps to define the concepts. The report will also discuss
the SWOT analysis and business canvas model.
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Contents
Executive summary...................................................................................................................................2
Introduction...............................................................................................................................................5
Discussion...................................................................................................................................................6
The organizational structure of the Volvo Company..........................................................................6
Innovation trend....................................................................................................................................6
Innovation strategies.............................................................................................................................6
Innovation capabilities..........................................................................................................................7
Innovation value creation......................................................................................................................8
Creation of innovation strategy to make sure the organizations configurations and their
significance.............................................................................................................................................9
Impact of Lean startup on Volvo Company......................................................................................10
SWOT analysis....................................................................................................................................11
Business canvas model.........................................................................................................................12
Conclusion and recommendation...........................................................................................................15
References................................................................................................................................................16
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Introduction
This is a very important and useful approach for entrepreneurs. A lean startup is an approach of
starting the business with the belief that the organization will be successful in determining and
investigating the sustainable requirements of victory. It was introduced by Silicon Valley
entrepreneurs Steve Blank and Eric Ries and encouraged by primary adopters containing Share
through co-founder and CTO Rob Fan. This approach basically provides opportunities for
entrepreneurs to extend their skills and develop their own business to enhance their approaches.
This approach completely beliefs in customer satisfaction rather than focusing on the company
dilemma. The lean approach works on developing and maintaining the hypothesis which they use
to take the feedback from customers. These feedbacks help to improve and provide some good
quality products and services to the customers.
Volvo is a multinational company of Sydney headquartered in Gothenburg. This is a
manufacturing company but its main work is construction, supply and sales of buses, trucks and
other construction equipment. Another work which done by the organization is to supply the
marine and industrial drive system. The organization also builds some models of cars. This study
will help to understand the relationship between Volvo Company and lean startup. The trends
and approaches of lean startup provided significant growth to the organizational structure of
Volvo. Lean startup is a very significant approach to business management discussed in the case
study of Volvo.
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Discussion
The organizational structure of the Volvo Company
Volvo in a manufacturing company situated in Sydney the company deals with the production
and sales of trucks and buses. The organization is one of the largest manufacturing industries. As
the organization deals with the manufacturing so they require to have skilled and talented
employees. The working culture of the organization is professional and suitable for the
organizational structure. Volvo started manufacturing cars also but later on, they had tied with
some different companies to expand their business. The organization provides some beneficiary
training to its employees to determine the work so that they can achieve the goals together and
leads the company towards growth (França, et. al., 2017).
Innovation trend
The innovation trend which is used in this case study is about lean startup. As the organization,
Volvo is a manufacturing company and had faced some up's and downs in their overall journey.
A lean startup is an approach which provides some essential key elements and structure to
implement some strategies which help to determine and understand the organizational growth.
The current time is full of competition and advancement and this is necessary for every
organization to implement some ideas which can help to make some strong entities in front of the
competitors so that it will become easy to set a benchmark for others. The lean startup is a
strategy which provides some ideas to thing different so that it becomes easy to establish a good
way to grow and develop the organization. Lean startup of Volvo Company provides some
essential ideas and approaches to the organization to build an effective and strong structure of
growth (França, et. al., 2017).
Innovation strategies
Lean startup is an appropriate option to work for the growth and develop of the organization as it
obtains some good and innovative approaches which help o organizational structure. The
company Volvo also applied some good and effective strategies to maintain their business. The
innovation strategies help to determine some different and effective ideas which can help to think
in some different way to achieve the success Lee & Seo, (2018).
 Reflection and empathy: the strategy of a lean startup starts with making the
relationship with customers. As they make some effective ideas to understand the mind
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and needs of customers. Organization Volvo makes some significant changes in its
service to make their customers feel more attracted to the organization. The lean startup
provides an option of feedback which determines the feedbacks of customers towards the
services.
 Think holistically: Each organization require having some different and innovative ideas
to make the organizational structure more effective. The thinking process helps to
determine the improvement criteria which eventually provide the structure growth
(Voegtlin & Scherer, 2017).
 Free-association: The lean startup approach provides the advantages to the organization
to attain the thinking and expectation of the customers. The organization Volvo had
adapted some different ideas to attain the attention and feedbacks of customers to
understand their satisfaction.
 Prototype: The prototypes are some concepts and significance which helps to make
some strategies to implement and build strategies for organizational growth. The
organization Volvo applied some ideas to maintain and manage the strategies to build the
innovation criteria. This strategy helps to define and adopt some good approaches (Hong,
et. al., 2016).
Innovation capabilities
Innovation is a very tricky and crucial task to be done as it requires to have some skills and
advantages to build a strong strategy. Innovation does not only means innovate or invent new
product or services but it also includes to make some changes in the existing services and
approaches. The existing service or organization Volvo are good but to intend some more strong
effects this is necessary for the organization to apply some innovative approaches. Innovation is
not that easy to adapt as it requires a very well managed thought process to establish the base of
innovation. The capabilities which are required for innovation can be considered as some
necessities or thinking capabilities to attain new and fresh ideas to explore the existing services
in a better way. The innovation requires having some capable human entities to achieve the goals
which meant to achieve development (Hoveskog, et. al., 2018).
Innovation value creation
The value creation refers to determine some economic value to be achieved in the respective
time of period. As it will be an assumption but it will not be that much good for the organization.
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This utility can help to assume but at the end, the necessary thing is to determine whether the
approach is valuable or not. The value of the strategy directly determines the availability and
success of the further approaches applied to make the organizational structure (Dentchev, et. al.,
2016).
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Creation of innovation strategy to make sure the organizations configurations and their
significance
The strategic configuration of innovation and creativity helps to determine the approaches which
help to understand and sign the actual need of the organization. The approach which aligned by
the organization Volvo was to determine and understand the requirements of customers and also
to understand the needs of the organization from the customers. To maintain the structure and
record of the requirements organization started maintaining the records when the organization
determined the needs of organization and customer both they started making some innovative
and new strategies to build trust and involvement of the customers towards their business (Love
& Roper, 2015).
Innovation in the commercial sector is not that easy as the world is full of competition and
everybody is attaining some ideas of innovation, the other risk with this approach is that is this is
easy to adapt by the current customers easily. The main risk or issue with innovation strategies is
to determine the actual approach to attain the strategies. The current world is full of innovation
and technologies this is also a very common thing that people get attracted to these technologies
very fast. To achieve the attraction of current customers this is most necessary to build some
good and strong technical approaches which help to enhance the business in a lenient way
(Hoveskog, et. al., 2018). The organization Volvo is a manufacturing company and they
completely understand that they require to have some good approaches to establish their business
so they started working on the technologies and latest trend.
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Impact of Lean startup on Volvo Company
The organization Volvo had adopted the approach of Lean startup which helped them to
understand and define the organizational structure for the growth. This approach also helped
them to understand and introduce new technologies to make their organization more impressive
and attractive. Volvo understood that the innovation strategies help to boost the business and it
also provides some approaches to gain growth and development. The other benefit which can be
attained by the help of innovation strategy is that it helps to attract more customers which helps
to ensure and increase the economic structure of the organization. The technologies and strong
organizational structure also help the organization to make an effective approach in front of the
competitors. Thus the lean startup provided some significant benefits to the Volvo Company
(Lee & Tseng, 2018).
SWOT analysis
Strength
 Provided some significant changes to
the organization to manufacture some
good product and services.
 As the organization deals with
manufacturing they provide their
employees with good training to
understand the work.
 The approaches help to determine the
sustainable and stability to organization
Weakness
 The company is not that much
capable of determining the latest
trends and challenges of the market.
 It takes the organization to some
drastic and economic issues as the
approach requires to attain some
different and valuable changes in a
quick manner.
Opportunities
 It provides the opportunity to understand
the requirement and needs of the
customers which helps to explore new
ideas and advantages.
 Another opportunity provided by this
Threat
 Increasing competition can lead to
obtaining some different and hard
to access strategies to be fulfilled.
 The current era is full of
competition which is common to
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approach is to introduce some good and
effective services for customer
satisfaction.
follow by the organization.
Business canvas model
Key partners
Other partners
o Specialize
d
technolog
y
providers
o Technical
team
o Analytics
o Insurance
o Many
others
Key activities
o Remov
e
friction
from
transpo
rtation
o Refine
value
proposa
l
o Analyz
e data
and
improv
e
Value
preposition
For employees
o Income
generati
on
o Good
working
culture
o Future
growth
For customers
o Fast
services
o Good
producti
vity
o Effectiv
e
approac
hes
Customer
relationship
o Good
services
o Customer
satisfactio
n
o Innovation
strategies
customer
segments
Employees
o Socio
economic
o Micro
graphic
o Behaviora
l
o Situationa
l
Customers
o Advance
technologi
es
o Good
opportunit
ies
o Beneficiar
y
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o Strategies
Key resources
o Skilled
employ
ment
o Data
analyst
o Good
manage
ment
o Ventur
e
capital
o Brand
value
Channels
o Social
medial
channel
o Verbal
marketing
o Media
o Commerci
al channel
Cost structure
Contribution to environmental
sustainability.
Contribution and approval of
innovation trends
Revenue stream
Online booking
Credit card
Debit card
Cash on delivery
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How the strategies which organization ensures the alignments to a trend of the innovation
The Volvo needs to determine approaches which are necessary to fulfil the requirements of the
customers. This is necessary for the organization to make some effective and innovative
strategies which help to develop and maintain the organizational growth (Blažek & Csank,
2016). To adapt the innovation most necessary thing is to adapt the current stage of
organizational structure and also the main concern should be customer satisfaction. These
opportunities help to determine the further process of customer satisfaction.
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