Question

Critically assess the threats to Volvo’s strategy and how such threats might be countered.

Answer 1

Critically assess the threats to Volvo’s strategy and how such threats might be countered.

• The global markets are seeing a change in buying patterns that are evolving more for the internet-driven supply chain model.

• The growing strengths of local distributors also present a threat to the market paying higher margins to the local distributors

• The competition has made the business to think of overall sales over profitability to keep the markets alive

• The business is not into innovation which restricts its growth dependent on the old manufactured product sales.

• Counterfeit cheap products may be a problem for the brand for its international business.

Hence Volvo has to invest in research so that people may give the products its new product category of innovation to stay ahead of the competitors. The international business opportunity of the brand helps it to evolve with time. The brand also has to do more for the evolution of the product by making it more fuel-efficient to counter any future threat of environment laws. Nevertheless, the distributor’s network has to be given a priority to make the internet sales to be there and the distributors of the local markets should gain from it.