Volvo
Targets Emerging
Markets With New Trucks
September 25,
2012, 11:57 a.m. ET
By CHRISTINA ZANDER
In this article written by Christina Zander for the Wall
Street Journal, the readers are introduced to Volvo's business plan to build on
their global presence and develop a market in Asia for mid-priced trucks. The
company's belief is that the creation of these trucks will help Volvo join a
expanding merging market in places such as Brazil. This new strategy coupled
with one of the most prominent truck makers in the world allows Volvo to expect
success from this business venture.
Strategically, Volvo has figured out that
by placing their product on a new market platform, they are reaching more
customers and also broadening their business portfolio of various products. In
order to compensate for their new venture, Volvo plans on cutting costs in
mature markets and improving customer service, and adding dealers to their
domestic market.
"The new vehicle, announced Tuesday as
part of a three-year margin improvement strategy spanning 2013 to 2015,
promises to be a game changer for the Swedish truck maker, Asia-Pacific
marketing chief Joachim Rosenberg said."
I
think that Volvo's plan is well-thought out and developed. They have taken into
account where the openings are for them to grow, as well as, recognizing where
they are spaces to reduce costs. The reduction of costs and the increase of
sales, can only lead to a successful growth strategy.
By utilizing a market
development strategy, in which they are entering a new market with a existing
product, they are taking a cautious risk. Obviously entering a new market can
be a daunting task and is not for everyone, however, in this circumstance it
seems that all the signs point to them prioritizing the correct opportunities.
Hence, I believe that with the help of their mid-priced product, brand
recognition, and strong domestic market structure, Volvo will be able to expand
on their already fluctuating business portfolio.
Topics: Business Portfolio,
Business Plan, Market Development, Domestic Market
Markets With New Trucks
September 25, 2012, 11:57 a.m. ET
By CHRISTINA ZANDER
Strategically, Volvo has figured out that by placing their product on a new market platform, they are reaching more customers and also broadening their business portfolio of various products. In order to compensate for their new venture, Volvo plans on cutting costs in mature markets and improving customer service, and adding dealers to their domestic market.
By utilizing a market development strategy, in which they are entering a new market with a existing product, they are taking a cautious risk. Obviously entering a new market can be a daunting task and is not for everyone, however, in this circumstance it seems that all the signs point to them prioritizing the correct opportunities.
Hence, I believe that with the help of their mid-priced product, brand recognition, and strong domestic market structure, Volvo will be able to expand on their already fluctuating business portfolio.
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