Volvo Trucks (A): Penetrating the U.S. Market

Michael E. Porter; Orjan  Solvell

Case | HBS Case Collection | February 2002 (Revised February 2006)

Volvo Trucks (A): Penetrating the U.S. Market

Abstract

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 U.S. 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.

Keywords: Market Entry and Exit; Competitive Strategy; Five Forces Framework; Truck Transportation; Global Strategy; Globalized Markets and Industries; Manufacturing Industry; Retail Industry; United States; Europe;

Format: Print

17 pages

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Citation:

Porter, Michael E., and Orjan Solvell. "Volvo Trucks (A): Penetrating the U.S. Market." Harvard Business School Case 702-418, February 2002. (Revised February 2006.)

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Volvo Trucks (A): Penetrating the U.S. Market

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