Volvo in Sweden (MOC, Tuesday, Week 2)
microeconomics-of-competitivenessyear-twoWhy doesn't Volvo do every activity in Sweden?
Competitive and comparative advantage.
Why does Volvo start out in Sweden?
Seems strange; dinky little country produces ~20% of heavy trucks in the world...
Actually:
Context for firm strategy and rivalry >> Scania
Demand conditions >> Icy roads, fuel efficiency, safety, cost of shipping
Factor [input] conditions >> talented people/engineers, raw materials (steel)
Related/supporting industries >> high standards in cars, steel mills