Volvo - Penetrating the Us Market

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Global Strategic Management

Case Analysis: Volvo Trucks

Submitted to: A. Pattana Boonchoo

Semester: 2/2005

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Group: Synergy

Section: 404

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BI 4242

Table of Content Executive Summary Internal Analysis 2.1 Mission 2.2 Goal 2.3 Current Strategies 2.4 Performance 2.5 Functional Analysis 2.6 Strength and Weakness III. External Analysis 3.1 General Environment 3.2 Business / Competitive Environment 3.3 Key Success Factors 3.4 Value Chain Analysis 3.5 Stakeholder Analysis 3.6 Opportunity and Threat IV. Critical Issues 4.1 CI-1 4.2 CI-2 V. Alternative Strategies 5.1 Strategic Package – 1 5.2 Strategic Package – 2 5.3 Strategic Package – 3 VI. Recommendations and Implementation VII. Case Questions 7.1 Case Question – 1 7.2 Case Question – 2 7.3 Case Question – 3 7.4 Case Question – 4 Appendix Appendix I Operating Margin Appendix II Market Share Growth in US Appendix III Truck Global Sales Appendix IV BCG Matrix Appendix V SWOT Analysis Table Appendix VI Five Force Analysis Table Appendix VII U.S Truck Market Appendix VIII Volvo Organization Structure I. II. -2-4-5-5-5-6-7- 10 - 11 - 11 - 12 - 14 - 15 - 16 - 16 - 17 - 17 - 18 - 19 - 19 - 19 - 20 - 20 - 22 - 22 - 22 - 24 - 24 - 26 - 26 - 26 - 27 - 27 - 28 - 29 - 33 - 33 -

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I.

Executive Summary Volvo Trucks has entered into the United States in attempts to survive in the

toughest market in the world. After an unsuccessful alliance, Volvo turned to acquisition and purchased two American truck companies. Although the company successfully utilized its brand and position itself as a high quality and safe vehicle, their sales remained low. Management does not seem to have a lot of information to make better judgments of the market. After reading the case, two critical issues were identified....