Colin Barry

Volvo in Sweden (MOC, Tuesday, Week 2)


Why 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...
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