Business Models- Volvo Group
Innovation and Sustainable Business Development
A business model entails the methods employed by a firm to earn the revenues projected in its strategic plan. Business model views the business as a system and guides the management on the best strategies of making money and enhancing its survival (Osterwalder & Pigneur, 2010). The creation of a business model involves the completion of business plans by determining the right products to pursue. This assignment explains the business model of Volvo Group, Sweden; manufacturer and service of trucks and construction equipment. In its business model, the Volvo Group pursues the manufacturing of buses, trucks, construction equipment and marine and industrial engines. Also, the Volvo Group offers clients with complete solutions for financing and service. Due to the company’s great desire to achieve customer satisfaction, the company has approximately 100,000 employees, production facilities in 18 nations, and differentiates its product sales to over 190 global markets (http://www.volvogroup.com/en-en/about-us.html). In this essay, Volvo Group’s business model, its significance, value proposition, resources, SWOT, the system of processes and other factors will be credibly analyzed. ORDER YOUR PAPER NOW
Volvo Group has one of the best business models among all manufacturing companies in the world. The management has a specialized department that maps out to create an ongoing value for clients and customers interests (Palo & Tähtinen, 2011). Today, Volvo’s success in the market is contingent upon its excellent business model and how its crafting fits the target audience and its market needs. The company has a diverse entrepreneurial competence in conformity to what customers demand as well as the strategies of meeting these customer demands to increase sales hence profitability (Kowalkowski, 2010). The use of business models in Volvo Group aims at articulating the value proposition, target market segmentation identification, defining the value chain structures, selecting the right technology and features and enhancing a proper estimation of its cost structure and profit potentials in its operations into the market (Chesbrough, 2010). For the case of Volvo Group, business models offer the management with a rationale for creating an appropriate venture in which all customer needs are upheld. On the theoretical perspective, business modeling goes hand in hand with business planning, and this is applied to Volvo Group….Show More