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Volvo Bus Case Study

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Competitive Strategies Case Study


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


OR



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.

  • 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.

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


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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I'm sharing my 2 cents of my experience (love) with Volvo busses.
Nov 2009, I'd to travel from Chennai to Trivandrum (TVM) to see my wife who was away at my in-laws home awaiting for delivery of our daughter. The occassion was for our wedding anniversary; as usual, I'd option to drive, which my wife strictly refused or take the train for which the railway politely refused (no tickets).

Determined to leave at any cost, I picked up the option to leave from Chennai at 15:00 by non-A/C bus operated by SRM to reach TVM by next day morning 6:00, which was the option to reach earliest. Fortunately, that bus was cancelled & luck favoured me to travel by Volvo at 18:00. That was one of the wonderful drive & I couldn't believe when I woke up at Tirunelveli at 4:00 (I was assuming it to be Madurai or I must be dreaming) & when this guy dropped me at Karamana junction at 07:15, I was more than thrilled.

I'd 3 trips after that & all 3 of them were through SRM & once I got dropped at the same junction by 6:15 AM. I also booked tickets for my friends who also appreciated the time & experience of travelling by Volvo. I'm looking forward for another trip with my Wifey & children in Volvo & Volvo only. The way they overtake the Tata & AL busses require more than pair of eyes to enjoy.

Just to give you a glimpse
Train time
1. Departs Chennai 20:00, reaches TVM 11:55 next day (16 hours)
2. Departs Chennai 19:15, reaches TVM 11:25 next day (16+ hours)
3. Volvo departs Chennai 18:00, reaches TVM 07:30 next day (13:30 hours)

Trust me, no more trains, no more car to TVM

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