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Case
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Reference no. 9-705-S14
Spanish language
Published by: Harvard Business Publishing
Originally published in: 2004
Version: 31 March 2004
Length: 20 pages
Data source: Published sources

Abstract

This is a Spanish version. Volvo Trucks has worked on a global strategy for several decades. Beginning in the mid-1970s, the company decided to enter the largest market for trucks: the United States. Over time, the company has struggled to get a significant share of the US market and at the same time integrate operations around the world into a truly global strategy. However, the competitive structure (five-force model) differs significantly between Europe and the United States, and in spite of heavy investments, the global synergies seem far-fetched. This case illustrates clearly that entry and penetration of a market is a learning process for Volvo, where the initial strategic logic and underlying assumptions have to be changed several times.
Location:
Industries:
Size:
80,000 employees, USD8 billion revenues
Other setting(s):
1975-2000

About

Abstract

This is a Spanish version. Volvo Trucks has worked on a global strategy for several decades. Beginning in the mid-1970s, the company decided to enter the largest market for trucks: the United States. Over time, the company has struggled to get a significant share of the US market and at the same time integrate operations around the world into a truly global strategy. However, the competitive structure (five-force model) differs significantly between Europe and the United States, and in spite of heavy investments, the global synergies seem far-fetched. This case illustrates clearly that entry and penetration of a market is a learning process for Volvo, where the initial strategic logic and underlying assumptions have to be changed several times.

Settings

Location:
Industries:
Size:
80,000 employees, USD8 billion revenues
Other setting(s):
1975-2000

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