Volvo 2008 Annual Report Download - page 18

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It is not enough to manufacture and sell high-quality products for
the Volvo Group to realize its vision to become world leader in
commercial transport solutions.
Many customers want long-term cooperation
around total solutions to execute their work as
effi ciently as possible with maximum profi ta-
bility and up-time. Consequently, when choos-
ing suppliers of vehicles or machinery, the
offering of supplementary services combined
with excellent products and high availability is
to a great extent crucial.
Accordingly, the Volvo Group is offering
such services as fi nancing and insurance, vari-
ous forms of service agreements, accessories
and spare parts to support core products. The
Volvo Group’s increasingly broad range of
these so called soft products now has evolved
into a more distinct competitive advantage.
Strengthening the soft products offering is
an important way for the Volvo Group to:
• Satisfy customers’ demands and require-
ments throughout the entire lifecycle of the
Facilitating
products and services
Supporting
products and services
Related
products and services
Vehicles
and equipment
product and thus create a closer, long-term
relationship with them.
• Increase sales of supplementary services and
products with sustainable profi tability.
• Enhance earnings stability by increasing the
share of revenues that is less cyclical than sales
of new “hard” products.
• Differentiate itself compared with competitors
by adding customer value throughout the
entire product lifecycle.
Growing aftermarket business
The Volvo Group’s soft products include vari-
ous types of fi nancing solutions, insurance,
rental services, used vehicles, spare parts,
preventive maintenance, service agreements,
assistance services and IT services. The range
and fl exibility of the offering means that the
Facilitating products and services
Products and services required for effi cient
use of the hard products.
Supporting products and services
Products and services used to increase
the value of the hard products and/or
to differentiate the offer from the
competition.
Related products and services
Products and services that have no traditional
linkage to the hard product offer and that can
be sold to both core and non-core product
customers.
A global group 2008
14