Volvo: Finding True Value In The Electric Bus Market Case Solution & Answer

^{Volvo: Finding True Value In The Electric Bus Market  Case Solution}

Introduction

Volvo’s mission statement is to provide an efficient transportation that is safe and pollutant-free for the environment around the subcontinent. Volvo is contributing a heavy amount in research and development to discover new fuel-saving options that would have an ability to reduce the environmental damage.

Volvo aims to become the world’s largest transportation producing company with a sustainable transport solution that would have a positive impact over the world’s social and economic environment.

Problem Statement

Birgit Skarsgard is the head of sustainability and public affairs at Volvo Group. Hehas successfully participated in the Electric cooperative experiment to connect the electric buses to Swedish market, using the True Value methodology of KPMG’s. This methodology is used by the firms to understand the future revenues due to the internalization of external entities.Volvo’s hometown of Gothen burg, Sweden,gladly accepted the electric buses with delight,as the part of the pilot program. (Hoffman, 2016).

Overview of the Case

Volvo has been increasing its business in many countries. Most of the countries in which Volvo is providing its energy-powered vehicles are observing for transport solutions to enrich their environment through energy-powered vehicles. In the following case study; Volvo is offering its products to Sweden. The Swedish government is taking multiple initiatives in the form of protecting the environment of the world and eliminating the carbon gas emission on the earth.

Volvo is launching the electric-powered bus in order to minimize the air and sound pollution caused by vehicles.. Additionally, Volvo has facilitated the country in identifying various actions to improve the environment, such as: encouraging the people to buy electric-powered cars for eliminating the pollution rate.

With the introduction of Electric city Sweden; Volvo is given the opportunity to expand its business and to provide its services in those countries which have dense population and their residents use public transport at a much higher rate, and due to the absence of environment-friendly vehicles; these countries have higher pollution rate. Volvo has chosen China to offer its  products in, as the Chinese government has been looking for  various solutions to reduce the pollution in the country and to enrich the environment by contributing large amount for the up-rise of energy-efficient vehicles.

Most Chinese people prefer public transport, such as: buses or taxis for travelling. The government of China contributed a large sum of money to introduce new energy vehicles which had limited success rates. Volvo has found an opportunity to selling its products in China, but if another electric vehicle manufacturing company approaches the Chinese market before Volvo, then it could become a severe threat for Volvo.

Assumptions

In the Chinese market;there are numerous competitors of Volvo that also manufacture  electric vehicle. The Chinese government is taking the initiative to reduce the air pollution from the environment through promoting the production of electric vehicles. Volvo has found China as the location where it has decided to expand its business in. Volvo can succeed  in China through the proper execution of its business model. The main factor which Volvo should emphasize on is technology, besides which it should also study the economic situation of the country where it has decided to expand its business. .

Issues

The major problems that Volvo will face in the future are:  increased competition, changes in government regulations, lack of resources and economic changes. Many automakers, such as General Motors, Ford and others, are revolving around energy-powered vehicles. This will expressively increase competition in the future. Other problems are alteration in government regulations, insufficient resources and the possibilities of a recession, which could severely affect the economic situation, lasting a negative impression on the company.

Evaluation

SWOT Analysis

Strength:

The management team of Volvo has been accomplishing its goal over the last decade by successfully forecasting its trends in the industry through its methodology. The methodology of Volvo is a highly efficient firm in its class. The status of the performance goes to successful implementation and well-organized operations management. The methodology of Volvo is brand equity in the domestic market that it is operating in, which enables the company to focus on various segments at the same time, through the products and portfolio brand of Volvo methodology.

Weakness

Although it is a main player in the domestic market, Volvo has a bitof experience in the international market. The financial statement of the Volvo Methodology is stable, advancing the 5-7 profits of the Volvo method may lead to a shortage of funds to invest in new projects.Demand for this specialty has grown significantly as a result of a recent trend, but there is a growing sense of dissatisfaction among the Volvo Methodology users. This appears in reviews of various online platforms. Volvo Methodology must target the areas where it could improve its consumers’ purchasing and post-purchase experiences.

Opportunities

Globalization is increasing in the world, leading towards uncountable opportunities to be availed in the market. Globalization has controlled the opportunities on the platform of international market platform. Volvo Methodology is at the forefront of seizing these opportunities and increasing its market share. These opportunities could be used for the developments of artificial intelligence to perform the forecast demand of consumer, niche market segment and to create the best solution engines. The Volvo method can take advantage of this trend by eliminating the number of offers in the market and concentrating on marketing efforts only on highly successful products.

Threats

Consumers are going to the first mobile environment that could stunt the growth, as Volvo Methodology still lacks the comprehensive planning of mobile. Volvo Methodology must retain a close eye on rapidly changing government regulations under the increasing pressure from protest groups and NGOs, especially on environmental and labor protection aspects.

Pestle Analysis

Political Aspects

It has a vibrant civil society community and Volvo Methodology must make bridges and explore the areas for co-operation. Society of civil groups is important not only in policy-making but also in shaping the broader ideology in the society. The country is unlikely to input into an armed conflict with any other state.The political system appears secure and both economic and foreign policy are reliable……………………..

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