Volvo 2014 Annual Report Download - page 55
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Strong market channels
The Volvo Group’s products are sold and serviced through wholly-
owned as well as independent dealers and service workshops. In
order to attain a market position which is strong over the long term,
good products are not enough. Of at least equal importance is a
fi nely -meshed network of dealers and service points that can sup-
port customers in demanding transport and construction businesses.
A testament to the strength of the Volvo Group’s distribution and
service network is the market positions that have been attained.
Develop and increase interface with customers
The majority of Volvo Group’s customers are companies within the
transportation or construction industries. The reliability and pro-
ductivity of the products are important and in many cases crucial
to the customers' success and profi tability.
The goal is that Volvo Group companies shall be regarded as
number one in customer satisfaction, in terms of both products
and services. The Volvo Group shall also be number one when the
dealers’ customers assess customer satisfaction.
Growing aftermarket business
In addition to vehicles and machines, the Volvo Group’s offering
includes various types of fi nan c ing solutions, insurance, rental
services, spare parts, preventive maintenance, service agree-
ments, assistance services and IT services. The range and fl exi-
bility of the offering means that the solutions can be customized
for each customer.
Since a large part of the offering within the aftermarket business
is requested as long as products are being used, they contribute to
balancing the fl uctuations in the business cycle for the Group. By
strengthening the aftermarket offering, profi tability and revenue sus-
tainability can improve for the Group throughout the business cycle.
The strategy to increase sales of services and aftermarket
products is an important element in the Volvo Group’s effort to
achieve targets for profi tability and growth, both in mature mar-
kets and in the Group’s new markets. During 2014, the services
and aftermarket products business represented approximately
26% of the Volvo Group's net sales, compared with 27% during
2013, with a larger portion of sales stemming from North America
where the aftermarket part of total sales is smaller than in for
instance Europe.
Reliable products and service are
crucial to customers’ profi tability
A GLOBAL GROUP 2014 BUSINESS MODEL WORLD-CLASS SERVICES AND DISTRIBUTION
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