Sustainable Competitive Advantage of Volvo in Chinese Market: A Discussion

Justify All Arguments Put Forward In The Assignment. a Wide Variety Of Sources Should Be Used, Including Annual Reports, Journal And Newspaper Articles, Corporate Reports, Industry Reports, Data Bases, Company Websites, Etc. Sustainable Competitive Advantage Of Volvo.

There are various aspects attached with Chinese market that attracts most of the business owners to invest in the Chinese market. China has been observed with diverse advantage in term to competition comparing the rival countries (Fang and Chimenson 2017). Hence, the paper aims to discuss about sustainable competitive advantage of Volvo in the Chinese market.

The company Volvo is a prosper group that deals with solutions related to transport including truck, buses, equipment of constructions, power solutions for the industrial and marine applications. This group is remarkable for high productivity and providing sustainable transporting and infrastructure support. The headquarter is located at Gutenberg, Sweden.

Expanding the business into the Chinese marketplace will provide various benefits to the company and their valuable consumers (Bismarck and Zheng 2016). The communist party of China (CPC) implemented various market related reforms from the initial period. Hence, the sustainable benefits Volvo can draw from Chinese market are

Political stability – from the beginning, Chinese market is observed with various instability. However, China is observed with less political risks comparing to the previous condition. According to the researchers China is currently dwelling as a happy and satisfied country (Williamson et al. 2013). Hence, the ruling CPC will be a favorable measure for Volvo to reinforce a political stability.

Market size – According to the statistics China is the top of the list of population that is 1.351 billion as per the record of 2012. It is one of the top most countries with high land mass. Usually a land with high mass is a potential and expanded market for business growth. Hence, Volvo can utilize the huge land mass to gain much benefit out of the company.

Lifestyle – China is Confucian in nature. It refers that the consumers are eager to pay for the premium products that will contribute to improve the lifestyle (Liu 2013). The company Volvo must remember that the market potential of the Chinese market imposes a continuing attitude to increase.

Technology – Utilizing the innovative technology of internet China is taking initiatives to remove the barriers from the marketplace. According to the report of 2015, Chinese market is observed with 800 million users of internet (Bismarck and Zheng 2016). Weibo is the largest social media platform in the Chinese market. The Volvo Company can use the social media platform to share their sustainable initiatives and make the consumers aware about their initiatives.

Transportation – The infrastructure of the transport system of China is improving from the late 1970. According to the report, the air traffic is increasing at a significant rate from the past 20 years with the leading industry of China (Bismarck and Zheng 2016). Hence, it will provide a greater opportunity to Volvo group to expand the business and market in the Chinese market with equal potentiality.

Conclusion

In conclusion, it can be said that, Volvo group is already a renowned name in the global automobile industry. The Chinese marketplace and the sustainable competitive advantage will contribute for the growth and development of the business from various aspects.

References

Fang, T. and Chimenson, D., 2017. The internationalization of Chinese firms and negative media coverage: The case of Geely's acquisition of Volvo cars. Thunderbird International Business Review, 59(4), pp.483-502.

Liu, Y., 2013. Sustainable competitive advantage in turbulent business environments. International Journal of Production Research, 51(10), pp.2821-2841.

von Bismarck, G. and Zheng, Y., 2016. Geely: A Case Study on the Trend Following Volvo-Owner. In Multinational Management (pp. 33-54). Springer, Cham.

Williamson, P.J., Ramamurti, R., Fleury, A. and Fleury, M.T.L. eds., 2013. The competitive advantage of emerging market multinationals. Cambridge University Press.