Therefore, it is important to bear this in mind when analysing and forecasting medium and long term trends. The fact that Volvo's margins are falling has of course a direct negative impact on shareholders and is therefore not without consequences for the evolution of the share price of this stock. Investors are closely monitoring the financial results of the company which have shown operating margins and net margins declining in recent years, regardless of the group's revenues, which have continued to grow.
Although this affair took place a few years ago, it still has some repercussions on the current sales of the group which relies on more precautions so that this situation never recur in the future.įinally, the second and last weak point of the company is the level of its margins, which is down slightly. That year, the group had to recall the Volvo Trucks from the 20 VNL models particularly due to a panel defect they had.
The case we are talking about here took place in 2015 when the group found itself obligated to recall various products, which of course damaged its brand image. The Volvo group invests a lot in the research and development segment and this capacity for innovation gives it a real advantage over the competition and to stay ahead in its sector of activity.įirst of all, with regard to one of Volvo's two major weaknesses, is the recall of certain products which had the direct effect of impacting the company's brand image. The last strong point of this company that we can point out here are the research and development capacities at its disposal. As a result, Volvo currently markets its products in Europe, North America, Africa, Asia and Australia. It has succeeded in establishing a lasting foothold in many developed countries and in emerging countries with the acquisition of a significant market share in several segments. The Volvo Group is able to occupy a prominent place in the international market thanks to its well thought-out and proven expansion strategy.
Remaining on Volvo's qualities and strengths, you can also take into account the worldwide expansion of the company which has been a great success. Finally, this also involves the marine and industrial engine market, with market shares also very valuable for the Volvo Company. This also applies to the bus and construction equipment sector in which the Volvo Group remains a major player around the world. This particularly involves the heavy-duty segment with a very large market share of more than 20% in almost all developed countries. The Volvo Group is the leader in certain segments in which it operates and on an international scale. This group, which operates in six different segments including heavy goods vehicles, construction machinery, customer services, buses, cars and Volvo Penta, doesn't just protect itself against the risks associated with a single specific sector but also allows it to reach a more diversified clientele and therefore expand its sources of income.Īnother strong point of the group is its particularly solid market positions in certain segments.
First of all, you'll notice the significant diversification of the products offered by Volvo.
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