Volvo: Finding True Value in the Electric Bus Market Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Volvo: Finding True Value in the Electric Bus Market Case Study Solution

The mission statement of Volvo is to offer efficient transportation which is safe and clean to the environment around all the cities across the continent. Volvo has been investing high amounts in the research and development department for finding anew fuel-efficient option that would reduce the environmental damages.

The goal of Volvo is to become the world’s largest transport manufacturing company with having sustainable transport solution that would have a positive impact on the social and economic environment of the world.

Since the company wishes to expand its Volvo buses to China, the porter 5 force would be analyzed for analyzing the industry situation of energy vehicle. The bargaining power of customer is low as the government has been investing a high amount of money on new energy vehicle. The bargaining power of supplier is moderate as there are few suppliers offering the materials for building electric powered cars. The threat of new entry is low as the investment cost for developing electric powered cars is high. The threat of substitutes is high as there are another energy powered vehicles which are hybrid electric, battery electric and fuel cell buses. The competition is low as there are few companies which are providing with new energy vehicles but have less success in developing electric powered buses.

The business of Volvo is to manufacture vehicles such as buses, trucks and other construction equipment related to vehicles. The business of Volvo before engaging in clean technologies was to manufacture series-cars. After engaging in clean technologies, Volvo focused on manufacturing electric powered bus(Ayre, 2017).

Answer # 2

The strategy of Volvo is to manufacture electric powered vehicles especially the buses while keeping the environment safe and clean. This strategy led to a complete change in the organizational design since the company’s focus was on manufacturing cars that would improve its sales and revenue. As a result, this caused the company to become a corporate social responsible organization that focuses on improving health of people through creating the environment safe.

The different product areas in which Volvo could focus on is to manufacture other energy-related powered cars, trucks and other vehicles such as hybrid-electric, natural gas, battery powered and fuel cell technologies. These other energy-related vehicles would help in minimizing the pollution and keeping the environment safe and clean.

These would fit with the organizational design as Volvo now focuses on manufacturing vehicles which are environmentally friendly and minimize the pollution. By manufacturing cars through using other environmentally friendly technology such as hybrid-electric, natural gas, battery powered and fuel cell technologies, company would be able to keep the environment safe and clean.

Answer # 3

Volvo has been expanding its business in many regions of the world. Most of the countries in which Volvo is offering its energy powered vehicles are looking for transport solutions for improving their environment through energy powered vehicles. In the case, Volvo is providing its products to Sweden. The government of Sweden is taking various measures for improving the environment by reducing pollution and emission.

This gave Volvo the opportunity for launching its ElectriCity which is an electric powered bus in which the result was that it has minimized pollution. Furthermore, it helped the country in identifying various measures for improving the environment such as through encouraging the people on buying electric powered cars for reducing pollution.

By launching ElectriCity Sweden, it presented Volvo the opportunity for launching in other countries where there is high population and people rely on public transport and the environment is highly polluted. One country which Volvo identified was China, as the government of China has been taking various measures for improving the environment by investing $1.79 billion for developing new energy vehicles.

Majority of the citizens of China prefer on using public transport such as buses or taxi. The government of China invested a high amount of money for launching new energy vehicle which had less success. This gave Volvo the opportunity for launching its new electric-powered bus in China. However, there are vehicle manufacturing companies in China such as Big Four which could focus on launching anew electric-powered business which is a threat for Volvo.

Answer # 4

The different Stakeholders which are influencing the company are the government, customers, employees,and suppliers. The government is one of the biggest stakeholders of Volvo as many governments and political parties are supporting and encouraging other vehicle manufacturing companies for launching their environmental friendly vehicles in their country for reducing pollution.

Many of the government of different countries are promoting new energy car vehicle public transport for reducing emissions. This causes an advantage for Volvo since it would not have to face government rules and regulation as many of the governments are promoting new energy vehicle. Similarly, in the case, the government of China is highly encouraging electric power vehicles for reducing pollution. China is one of the most populated countries in the world and the people highly rely on public transportation. Its government has been spending a high amount of money for launching a new energy car for reducing emissions...............

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