Running head: VOLVO MOBILE TECHNOLOGY 1 VOLVO MOBILE TECHNOLOGY 7 Volvo Mobile Technology Christy Drexler Professor Akermann October 31, 2016 Volvo Mobile Technology SWOT Analysis Strengths Volvo Company has enough resources and ability that helps in eliminating the downtime of their trucks. The company has the funds to pay for a regular subscription and enough skilled employee that are necessary for the Volvo group success. The Volvo team has a new product, Volvo mobile, the product will help the company in further increasing its market share. Volvo has a significant market share of about 23.8% of the market share in Europe and 19.6% of the market share in the US ready for her products. Volvo Trucks has an extensive inventory of goods, especially truck parts, in which Volvo dealerships have access. Volvo Mobile also gives companies an incentive to buy Volvo products rather than buying from their aftermarket competitors Opportunities Volvo Mobile can be the leading track company in mobile technology in the industry Volvo Group is at the forefront of the industry regarding customer service. With the Volvo mobile application, customers wills items needed and track shipments on their own. Volvo Mobile comes with invaluable information on Volvo trucks, and companies will subscribe monthly based on the needs and wants of their clients. The subscription comprises the ability to order and track parts, annual program training, and information to help technicians fix Volvo trucks. The company will earn extra income which can be used in enhancing the Volvo mobile so as to ensure the customers are fully satisfied. A portion of the additional revenue will also be used in employee training and development and some of the income for social responsibility purposes. Weaknesses Volvo Mobile is only focusing on big business leaving out the smaller ones which may be equally profitable. Threats There are middlemen who increase the firm’s losses per truck. New market entrants, who may embrace their technology or use a more advanced technology. Enough Financial Resources Volvo Company has adequate resources at their disposal to meet all its operational costs hence the firm can run its operations smoothly(Ingi Árnason, Jepsen, Koudal, Rosendahl Schmidt, & Serafin, 2014). Availability of capital to an enterprise is crucial since it helps in meeting various costs as they arise. Some of these expenses include production costs, shipment costs, employees’ remunerations and development and also to cater for contingencies that may occur. The company should, therefore, come up with criteria which will be used in determining the urgency of financing various corporate operations. The business can use some of the following questions to classify its activities in their order of priority; First is the operation a value-adding- work? Before allocating funds to a given activity, the firm should determine whether the activity will contribute to the g ...

1. Running head: VOLVO MOBILE TECHNOLOGY 1
VOLVO MOBILE TECHNOLOGY 7
Volvo Mobile Technology
Christy Drexler
Professor Akermann
October 31, 2016
Volvo Mobile Technology
SWOT Analysis
Strengths
Volvo Company has enough resources and ability that helps in
eliminating the downtime of their trucks.
The company has the funds to pay for a regular subscription and
enough skilled employee that are necessary for the Volvo group
success.
The Volvo team has a new product, Volvo mobile, the product
will help the company in further increasing its market share.
Volvo has a significant market share of about 23.8% of the
market share in Europe and 19.6% of the market share in the US
ready for her products.
Volvo Trucks has an extensive inventory of goods, especially
truck parts, in which Volvo dealerships have access.
Volvo Mobile also gives companies an incentive to buy Volvo
products rather than buying from their aftermarket competitors
Opportunities

2. Volvo Mobile can be the leading track company in mobile
technology in the industry
Volvo Group is at the forefront of the industry regarding
customer service. With the Volvo mobile application, customers
wills items needed and track shipments on their own.
Volvo Mobile comes with invaluable information on Volvo
trucks, and companies will subscribe monthly based on the
needs and wants of their clients. The subscription comprises the
ability to order and track parts, annual program training, and
information to help technicians fix Volvo trucks.
The company will earn extra income which can be used in
enhancing the Volvo mobile so as to ensure the customers are
fully satisfied.
A portion of the additional revenue will also be used in
employee training and development and some of the income for
social responsibility purposes.
Weaknesses
Volvo Mobile is only focusing on big business leaving out the
smaller ones which may be equally profitable.
Threats
There are middlemen who increase the firm’s losses per truck.
New market entrants, who may embrace their technology or use
a more advanced technology.
Enough Financial Resources
Volvo Company has adequate resources at their disposal to meet
all its operational costs hence the firm can run its operations
smoothly(Ingi Árnason, Jepsen, Koudal, Rosendahl Schmidt, &
Serafin, 2014). Availability of capital to an enterprise is crucial
since it helps in meeting various costs as they arise. Some of
these expenses include production costs, shipment costs,
employees’ remunerations and development and also to cater for
contingencies that may occur. The company should, therefore,

3. come up with criteria which will be used in determining the
urgency of financing various corporate operations. The business
can use some of the following questions to classify its activities
in their order of priority;
First is the operation a value-adding- work? Before allocating
funds to a given activity, the firm should determine whether the
activity will contribute to the general output of the enterprise or
not?
Lastly, the company should determine, how urgently does the
function need to be financed? The urgency of operation is
imperative since it will help the firm finance its operations in
their order of importance and impacts to the organizational
performance.
Opportunity to be Market leader in the industry
Besides, the company can be the leading firm in the truck
industry and enjoy the first mover benefits. With the
introduction of the Volvo mobile technology, the firm will be in
a position to attract a larger market share and to meet their
needs by clients’ specifications. For the Volvo Corporation to
enjoy the first mover benefit the company should consider the
following key questions;
Is the firm able to protect the technical know-how concerning
the Volvo mobile or will the information be leaked?
Is the firm in a position to train and develop its employees
based on the adoption of the new technology?
If the corporation can find solutions to the above questions,
therefore, the firm can move forward and enjoy the first mover
benefits. The enterprise should consider putting measures that
will ensure that the technical know- how concerning the
technology does not leak to other firms. Furthermore, Volvo
group will have to train their employees on how to work with
new technology, Volvo mobile technology, to ensure increased
output per worker. A performance appraisal can be conducted in
the end to analyze the impact of the new technology and the
consequences of employee training sessions(Okyere-Kwakye &
Oduro Addo, 2013).

4. Intermediaries Interference with Supply Chain
However, Volvo Company is faced with the issue of eliminating
the middlemen. In the truck industry agent’s involvement means
that the company may incur various losses. The satisfaction of
the customers is minimized since it takes time for the
middlemen to seal their deals with different companies (Garcia,
2012). Besides the middlemen can provide the wrong item due
to miscommunication between him and the customers (Garcia,
2012). To successfully eliminate the middlemen, the business
will have to conduct a small survey that will help in identifying
the agents. The following are some of the questions that can be
used.
Who are these middlemen?
Where are they located and how are they impacting the
company’s supply chain?
With such questions the enterprise will make informed decisions
on the strategy to employ in eliminating the identified
intermediaries.
New Market Entrants
The Volvo Company also faces the threat of new market
entrants. Given that the truck industry is more of an
international market potential investors from various countries
might invest in the industry hence posting a competitors threat.
The new entrants might be well organized and with robust and
rational strategies that might help them to outdo Volvo
company. Since the enterprise does not have the power to
control the entry and exit of firms in the industry it should
formulate strategies that will help it withstand the threats that
the new enterprises may pose. By answering the following
questions, the business can formulate informed strategies, for
instance;
How can Volvo Company improve employees’ skills and
abilities?
How will the company retain its employees?
Conclusion
In summary, Volvo mobile technology introduction is a strategy

5. that will help the Volvo Group realize its full potential.
Therefore the company should come up with proper strategies
base on concrete evidence on how it will be the market leader in
the truck industry and how it will retain that position.
References
Ingi Árnason, J., Jepsen, J., Koudal, A., Rosendahl Schmidt, M.,
& Serafin, S. (2014). Volvo intelligent news: A context aware
multi modal proactive recommender system for in-vehicle use.
Pervasive And Mobile Computing, 14, 95-111.
http://dx.doi.org/10.1016/j.pmcj.2014.06.005
Okyere-Kwakye, E. & Oduro Addo, S. (2013). Employee
Retention: A Critical Factor For Organisational Perfomance.
Saarbrücken: LAP LAMBERT Academic Publishing.
Garcia, H. (2012). The power of communication. Upper Saddle
River, N.J.: FT Press.
Volvo Group Strategic Plan: New Product or Service
BUS/475
October 24, 2016
Professor Akerman
Running head: VOLVO GROUP STRATEGIC PLAN: NEW
PRODUCT OR SERVICE
1
VOLVO GROUP STRATEGIC PLAN: NEW PRODUCT OR
SERVICE
2

6. Volvo Group Strategic Plan: New Product or Service
Introduction
Volvo Group is a Swedish based company that started in 1927
by Assar Gabrielsson and Gustaf Larson. Since then Volvo has
grown into one of the truck and construction equipment
manufacturers in the world. In 2015, Volvo Group had an
operating income of SEK 17.5 billion which is equivalent to 2.1
billion USD. As of 2015, 39% of Volvo Group’s net income
came out of Europe, with 33% of the company’s business comes
from the United States. Also, Volvo has 23.8% of the market
share in Europe and 19.6% of the market share in the US. The
bulk share of Volvo’s net sales is dominated by the Trucking
Industry at 68% followed by Volvo Construction Equipment
with 16%, which is where the focus of the new product will be.
The current CEO of Volvo, Jan Grurander, stated in a 2015 Q1
meeting that it is necessary to focus on the strength of Volvo’s
technological capabilities, as well as capitalize on the products
towards customers (The Volvo Group, 2015). The new product,
a mobile customer service application, is intended to increase
customer purchases, customer service, and save Volvo
dealerships time and money.
New Product
The new product that is being proposed is an application called
Volvo Mobile, that can be used on computers and mobile
phones, allowing customers to identify, located, and purchase
parts and other products. Volvo Trucks currently has a large
inventory of products, especially truck parts, in which Volvo
dealerships have access to. The idea behind the mobile
application is to give the same access of a Volvo dealership to
large account holders and businesses that use Volvo Trucks and
Volvo Construction Equipment. The application will work well
with most trucking companies because a majority of businesses
that are targeted will have the employees and staff needed for
the application to be beneficial. With a simple training program,
support from local dealerships, and an online support team that

7. is already in place; it would be easy to train companies and
their employees to use the application. The trucking industry
has seen a lot of innovation in terms of manufacturing, but this
sort of technological innovation is not currently offered to
customers. As Volvo Truck sales continue to grow, and local
dealerships become busier, this technology would be beneficial
to both customers and Volvo dealerships.
Mission Statement
The mission of Volvo Mobile is to lead the industry in
technological advancement, and helping to service customers,
by allowing companies access to Volvo’s resources; thus
limiting down time of Volvo trucks and equipment. Volvo
Mobile will indeed help to service customers in this manner.
Most trucking companies already have their own inventory as
well as designated staff that order parts and products in order to
maintain their. The cycle has stayed the same for quite some
time now, failing to take advantage of the latest technological
advancements. Companies will call their local dealership and
the dealership will have to research and order the necessary
parts or products. In many instances, communication between
customers, dealerships, and vendors are misinterpreted and
customers receive the wrong part. This is unacceptable for
trucking companies, which rely on their trucks running to make
money. Each day a tractor is down, a company loses $800-
$1000 of income and the number becomes much larger when
you factor in construction equipment (Truck Info, 2015). It is
important for Volvo Mobile to help customers avoid this by
eliminating the middle man and allowing customers to order on
their own.
Vision Statement
The vision for Volvo Mobile is to be the trucking industry’s
pioneer in mobile technology and help to lead Volvo Group to
the forefront of the industry in terms of customer service. With
our application, customers will be able to easily identify the
parts or products needed, have access to their local dealerships
inventory, and be able to order products as well as track

8. shipments, etc. The initial target of Volvo Mobile is the large
accounts of Volvo Group. These companies have the capital to
pay for our monthly subscription as well as the resources and
staff needed for Volvo Mobile to be beneficial. As Volvo
Mobile grows with research, development, and through trial and
error, it is our long term goal for all Volvo truck owners to use
the application. This will alleviate the pressure that dealerships
with large customer bases have. It will allow a Volvo dealership
to focus on other aspects of their business and not have to spend
as much time researching and ordering parts for customers. It
also allows customers the access to Volvo’s resources and the
ability to research and order parts on their own; helping to
eliminate the downtime of their trucks.
Business Model
Volvo Mobile is a monthly subscription that companies will pay
to use with different prices depending on what the customer
wants. For large businesses with many Volvo trucks in their
fleet, it would be beneficial to use the premium subscription
which will cost roughly $399-$499 a month. While this may
seem like a steep price, it comes with invaluable information on
Volvo trucks. This includes the ability to order and track parts,
access to Volvo Group and local dealership inventory, annual
program training, and service bulletins and information to help
technicians fix Volvo trucks. Volvo Mobile will also have
cheaper options for smaller companies in the future, but
currently the larger businesses are the focus.
In today’s trucking industry there are an estimated 1.2 million
trucking companies in the US alone, with 97% of companies
operating 20 or less trucks, 90% operate 6 or fewer, and 3%
operate over 20 trucks. Volvo Mobile is targeting larger
companies, which we consider to be 10 Volvo trucks or more,
and we estimate that to be about 10% of the 1.2 million trucking
companies in the United States (Truck Info, 2015). With
120,000 companies targeted, it is our goal to have 50% of these
companies using Volvo Mobile in the next 1-2 years and over
80% within 3-5 years. This would generate an estimated $300-

9. 365 million by the end of the second year at a rate of $25-30
million a month. Volvo Mobile also gives companies an
incentive to buy Volvo products rather than buying from our
aftermarket competitors. Not only will it generate another
revenue stream, but it will also help to increase sales. With this
new income, Volvo Mobile will further invest and develop the
application in order to keep customers satisfied with the product
as well as use a portion of the income towards employees,
dealerships, and social responsibility.
Principles and Values
As stated in both the mission and vision statements, the Volvo
Mobile Division is dedicated to customer service. It is the belief
of the organization that great customer service starts with
employees who love their job. The members of the Volvo
Mobile Team will have all of the benefits that other great
companies offer; paid vacation, maternity leave, sick leave,
401k, etc. Volvo Mobile will also offer sales incentives for
dealerships and commission for the Volvo Mobile sales team. It
is the plan of Volvo Mobile to push the company’s employees to
reach the goals that are set in the business model and to do so
by investing in the staff. Volvo Mobile also plans to invest in
the future of technology by donating as well as investing in
internet technology schools and small business startups. It is the
social responsibility of a company with the Volvo name to give
back to the community that keeps Volvo moving forward.
Conclusion
As the first quarter of 2016 is coming to a close, Volvo Group
is looking to follow up after a record year for the company in
2015. With Volvo Mobile, the company can expect further
growth in parts sales, truck sales, and a brand new revenue
stream of $25-30 million a month by 2019. As technology
continues to grow and connect the world, Volvo Mobile plans to
use the mobile phenomena as an advantage and create a
connection with customers that is currently not existent in the
industry today (Altman, 2016). By allowing customers the
access to all of the information as a dealership, it would be

10. beneficial to both customers and Volvo Group. The Volvo
Mobile Division is dedicated to customer service and will
continue to invest in its products and employees to ensure
customer satisfaction and improve the outlook of Volvo Group’s
reputation.
References
Altman, I. (2016). Top 10 Business Trends That Will Drive
Success In 2016. Forbes. Retrieved from
http://www.forbes.com/sites/ianaltman/2015/12/01/top-10-
business-trends-that-will-drive-success-in-2016/#10b019205571
The Volvo Group. (2015). Annual and Sustainability Report.
Retrieved from
http://www3.volvo.com/investors/finrep/ar15/ar_2015_eng.pdf
Truck Info. (2015). U.S Statistics Retrieved from
http://www.truckinfo.net/trucking/stats.htm#Size