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Competitive Strategies Case Study

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Case Title:

Volvo in India

Publication Year : 2006

Authors: Philip Anil Kumar, Mridu Verma

Industry: Automobiles

Region:India

Case Code: COM0168P

Teaching Note: Available

Structured Assignment: Not Available

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Abstract:
AB Volvo is a Fortune 500 company based in Sweden. Its product portfolio consists of commercial vehicles like cars, trucks, buses, construction equipment, marine and industrial engines, and aero engines. Its high-end, high-performance cars, trucks and buses are well known for their driver comfort and safety. Volvo entered India in 1997 by establishing a subsidiary ‘Volvo India Ltd’. In 1998, it established Volvo Trucks factory in Hoskote, near Bangalore in Southern India with an investment of $70 million. The company faced intense competition from established players like Tata Motors and Ashok Leyland. This case study discusses Volvo’s strategy for the Indian market and how it became successful as a niche player.

Pedagogical Objectives:

  • To understand the Indian commercial vehicle market
  • To discuss the entry strategy of Volvo in India
  • To discuss Volvo’s strategy for the truck and bus segment.

Keywords : AB Volvo; SKF; Scania; Tata Motors; Competitive Strategies Case Study; Ashok Leyland; Volvo Penta; Starbus

Contents : 
The Indian Auto Market
Map of the Golden Quadrilateral
Volvo’s strategy in India
Volvo’s Growth in Truck Segment
Volvo’s Growth in the Bus Segment
Structure of AB Volvo group
Trends in CV segment
IT sourcing from India

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