Volvo SWOT Analysis [Update 2022] ❤️

Volvo SWOT Analysis 2022

Volvo SWOT Analysis: One of the biggest automobile brands The Volvo Car Corporation was founded in Gothenburg, Sweden by Assar Gabrielsson and Gustaf L. Larson in 1927. 

Since the beginning, the goal of the two founders was to design and build vehicles that were secure and suited to the Swedish climate and roads that were a disaster at the time. 

Therefore, the development of Volvo over its last 80 years was centered on safety, which is the main premise of Volvo’s design, design, and endurance of the vehicles. 

The first Volvo truck was introduced and was sold immediately in January 1928, but not just in Sweden. In the 1930s, there was the export of Volvo trucks into Europe. 

Volvo SWOT Analysis

In 1929, the initial marine engines were released and were followed by the first bus released in 1934 and the first aircraft engines in the 1940s, allowing the company to develop and expand and eventually become the largest company in the world.

In 1999, Volvo Group has sold Volvo Cars for $1.8 billion to Ford and this was the most costly mistake made by Volvo’s management. 

In December 2008, Ford announced that they were considering selling the company and in December 2009 it was confirmed that its preferred purchaser is Geely Automobile, the Chinese auto manufacturer. The contract was signed on the 28th of March 2010, for $1.8 billion.

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Company Background

Volvo Headquarters Corporate Office Address: 1 Volvo Dr. Rockleigh, NJ 07647, United States
Volvo Headquarters Corporate Office Phone Number 1-201-768-7300
Volvo Headquarters Corporate Office Fax Number: 1-201-768-7300
Volvo Headquarters Corporate Office Email Address [email protected]
Volvo Social Media Links:
Volvo Online Resources:

 Strengths In The SWOT Analysis Of Volvo

Volvo SWOT Analysis

  • Multi-faceted Portfolio of Products Portfolio: Volvo operates through six different business segments that include construction equipment, trucks, Volvo Penta, customer finance, vehicles, and buses. With such a broad portfolio, Volvo is well balanced with its earnings and offers complete solutions that tap into high-value options.
  • Affirmed marketplace positions in different categories: Volvo has a top position in several of its segments around the world, particularly in the truck market for commercial vehicles with a substantial percentage of market shares (over 20 percent) in most countries that are developed. Volvo has also been a major manufacturer of buses and construction equipment around the globe and also enjoys a good market share in industrial and marine engines.
  • Global Expansion Volvo’s position in the world is because of its strategies for expansion in which it has entered a variety of emerging and developed countries, and has secured a significant market share in different segments. Volvo has increased its presence across Europe, North America, Africa, Asia, and Australia.
  • A strong Research and development capability: Volvo has focused heavily on Research and Development and is investing heavily in. A strong R&D lets the company keep a competitive edge over its competitors and keep ahead of the trending industries.

Weaknesses In The SWOT Analysis Of Volvo  

Volvo SWOT Analysis

  • Recalls for products impact the image of brands: Volvo has had to recall numerous items in the past which has a negative impact on the reputation of Volvo. In 2015, for instance, Volvo Trucks recalled 2014 and 2015 VNL models because of a flaw in the panel. This kind of incident can affect the image of the brand and therefore Volvo must take additional security measures in the near future.
  • Margins are decreasing: Volvo’s operating and net margins have decreased in recent years despite experiencing growth in revenue. The company’s margins have been dwindling between FY 2012 and FY 2013 in a continuous manner. This constant loss can negatively impact the confidence of shareholders.

Opportunities In SWOT Analysis Of Volvo 

Volvo SWOT Analysis

  • The world road freight sector: The global road freight industry has experienced growth in both volume and value in recent years. It is predicted to expand at a rate of 6percent over the next five years. Volvo is a world-class leader in the truck segment and is in a position to profit from the expansion that has been created.
  • An optimistic outlook for the global market for trucks: The world truck market is anticipated to expand at a rate of 9% until the year 2018. Particularly for the Asia Pacific region, the trucks market has seen positive growth in recent times. Volvo is expected to profit from whatever demand is generated in the future.
  • Enhancing Global Construction Industry: The construction industry in the world has seen indications of improvement in recent years. It is expected to grow at a rate of 10.3 percent until the year 2018. Particularly in the emerging economies with high infrastructure expenditures is anticipated, and Volvo will benefit.

Threats In SWOT Analysis Of Volvo 

Volvo SWOT Analysis

  • Competition is fierce and causes prices to be wary: Volvo has to contend with fierce competition in all its segments, which places pressure on firms to improve their product’s performance continually innovate and to create price pressures. Volvo is in competition with other businesses such as Caterpillar, CNH, Cummins and Hitachi, and many others. This affects the bargaining ability of Volvo and creates pressure on pricing.
  • Environmental regulations are stringent: Volvo faces stringent environmental regulations in all its segments, especially in diesel vehicles, industrial engines, and the construction industry, in which regulations vary from one country to the next, and therefore, the cost of compliance increases.
  • Changes in the currency affect the business Volvo operates activities across the globe in a variety of countries and is therefore vulnerable to fluctuations in currency. Volvo’s financials are reported using Swedish Kroner and fluctuation, especially with regard to US Dollars can affect the business of Volvo.

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Limitations of SWOT Analysis for Volvo

While it is true that the SWOT analysis is used widely as a tool for strategic planning, however, it does have some limitations.

  • Certain aspects or capabilities of an organization could be both a strength as well as a weak point at the same. This is among the most important limitations that SWOT analysis has. For instance, changing environmental regulations could be an opportunity and a threat to the company. However, however it could also be an opportunity in the sense that it allows companies to be on the same level or even gain an advantage over competitors if they are can develop their products quicker than competitors.
  • SWOT is not a method of determining how to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be a complete solution.
  • The matrix is merely an initial point of reference for an analysis of how the proposed strategies might be implemented. It also provided an evaluation window, but not a strategy for implementation that is based on the strategic competitiveness of Volvo
  • It is a static analysis that analyzes the current conditions with only a few potential modifications. When circumstances, capabilities, as well as threats and strategies, evolve, the dynamics of a competitive setting will not be apparent in a single, unified matrix.
  • SWOT analysis can make a firm over-emphasize the importance of a single external or internal aspect when formulating strategies. There are interrelations between the important external and internal elements that SWOT doesn’t reveal, which can be vital in formulating strategies.

Weighted SWOT Analysis of Volvo

Due to the previously stated shortcomings of the SWOT analysis/ matrix, the management of corporations has decided to assign an appropriate amount of weightage for every internal strength and weakness of the business. 

Companies also evaluate the probability of future events happening in the near future, and the impact they will be on the company’s performance.

This technique is known as a weighted SWOT analysis. It is superior to basic SWOT analysis as With weighted SWOT analysis Volvo managers can concentrate on the most important aspects and eliminate the less important ones. 

This also helps solve the problem of a long list which is when organizations make lengthy lists but not addressing any of the elements are considered to be crucial.


Who are Volvo’s main competitors?

We can therefore conclude from this (not in the sense of) scientific research that Volvo’s primary rival in the luxury car sector is Audi which is closely followed by BMW.

Who are Volvo’s main competitors?

So, we can conclude from this (not in the sense of) scientific research that Volvo’s primary rival in the luxury car sector is Audi which is closely followed by BMW.

Who are Volvo’s rivals?

The top Volvo Group competitors are Navistar, Daimler, Audi, Tata Motors, Volkswagen, PACCAR, Penske Automotive Group, MAN Truck & Bus, Scania, and Isuzu.

Why are Volvos so unreliable?

One of the main reasons they are not considered reliable is connected to the typical repair cost. If repair costs for cars are higher, the trustworthiness of the car is diminished consequently. The cars that needless repairs, and also cost less each time they visit the garage, are that are considered to be more trustworthy by drivers.

How long do Volvo engines last?

How long do Volvo engines last? Volvo engines are expected to last around 200k or more when maintained properly. This means that if you travel the typical 15,000 miles per year, your engine could last for 13 years or more!


In the end, the term “international marketing” is utilized by multinational businesses. Volvo is among the companies that ensure its marketing department is working efficiently. In terms of marketing concerned, the market mix needs to be maintained by the organization.

Volvo employed a variety of strategies to limit the amount of competition, and to boost the sales for its goods. For instance, differentiation of products is among the most effective methods.

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