Volvo 2001 Annual Report Download - page 14

10
Core values and branding
The Volvo brand implicitly guarantees that
quality, safety and environmental care form
part of every business offer. Therefore, all
companies within the Volvo Group should
develop their operations to meet the high
standards established by Volvo’s core values.
With the multi-brand strategy, the respec-
tive brands are to achieve leadership and
preference within their specific categories.
This will strengthen business growth, overall
profitability and the strong market positions
of the Volvo Group.
Services
Services are of increasing importance to
Volvo. In recent years the growth rate within
services has by far outperformed the sales-
growth of “hard products” such as trucks,
buses and machinery.
The transport solutions offered by Volvo
are combinations of hard and soft products,
designed to improve the customers business.
Volvo’s customers use the products and ser-
vices as tools in their business, which in-
spires Volvo to continuously develop solu-
tions to meet the customers demand.
Volvo Buses offers its customers a wide-
ranging menu of fleet operation options,
including contract maintenance, leasing of
the fleet, vehicle replacement planning, acci-
dent and vandalism repair, management of
the operator’s staff and premises: this results
in accurate cost control and planning of the
duration of the contract for the Volvo
Customers.
Volvo CE has launched a global rental ini-
tiative, ensuring that customers who need a
Volvo CE product have the possibility to
rent it.
Volvo Penta offers boatbuilders installa-
tion design and support at the customer site
for continuous improvement of delivery
quality.
Financial solutions are also offered, most-
ly truck related, but also for buses and con-
struction equipment. The services offered
include financial and operating leasing,
insurance, installment contracts and dealer
financing. Other offers within the Group are
maintenance contracts and up-time warran-
ties.
Business partners
Volvo’s ambition is to build a close coopera-
tion with its business partners. This is done
to support customers’ needs and to make the
operations run as efficiently and smoothly as
possible.
The Volvo Group has a customer focus
and always strives to develop into the pre-
ferred business partner of its customers. The
concept of selling vehicles together with
different kinds of services is one step in the
direction of fulfilling the customers’ need for
a “one stop shopping” basis.
Volvo Aero has a long-term tradition of
close partnership with other manufacturers
of aircraft engines. This “Specialized for
Partnership” business concept has proved
very successful, since Volvo parts are used in
about 80% of all engines for large commer-
cial aircraft.
Volvo Logistic Partner Agreement (LPA)
is based on a partnership between Volvo
Parts and the dealers. The overall goal is to
accomplish a high availability of spare parts
to customers, combined with an efficient
stock holding.
The Volvo Group is also a large customer
to other suppliers. The purchasing strategy is
focusing on an integration of suppliers into
the product development, manufacturing
and marketing process.
STRATEGY AND
BUSINESS ENVIRONM ENT
The new Renault Magnum was
launched in 2001.