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SWOT ANALYSIS: GELLY’S ACQUISITION OF
VOLVO AREESHA
WEAKNESSES:
MEMON
Weaknesses are the capabilities, areas or skills in which Geely’s Volvo
BILAL
lacks. It restrains a firm’s ability to build its competitive advantage.
Following are the weaknesses of Geely’s Volvo.
AHMED
 Lack of critical talent: According to our point of view, Geely’s

SAQIB
Volvo is suffering from lack of critical talent especially in
technological areas, and digital transformation. They are
SALEEM
struggling to improve their processes according to the advanced
technologies and artificial intelligence.
 ABDUL
Geely’s business model can be replicated easily, An industry like
Geely’s Volvo, it’s very difficult to implement intellectual property
WADOOD
rights, and it’s difficult to stop the startups, deranging markets at
various other levels.
 Lack of workforce diversity: We believe, that Geely’s Volvo is not
enough diverse because most of its growth is in its domestic
market, and less growth in international market.
 Customer dissatisfaction: Even though the demand of Geely’s
Volvo has not gone down but the customers feels dissatisfied with
the purchase and post purchase behavior.

GELLY’S ACQUISTION OF
Project management is only focusing on internal delivery and not
considering the interests of external stakeholders.
VOLVO ASSIGNMENT # 02
OPPORTUNITIES:

Opportunities are external factors that Geely’s Volvo can avail for
the further expansion and development. Following are the
opportunities for Geely’s Volvo.
Areesha CSR
  Developments in Artificial Intelligence: It can use artificial
intelligence to predict customers’ demand in a better way and
can also cater niche markets and make better
recommendation engines.
 Analysts pointed to very high profit margins in the luxury car
market in china.
 Increasing standardization: Geely’s Volvo can grasp by
reducing the number of offerings in the market and focus on
the successful products.
 Growing market size and evolving preferences of consumers
Lucrative Opportunities in International markets: As
Globalization has led to opportunities in international market,
so Geely’s Volvo can tap on those opportunities and can
increase the market share
 Access to international talent in Global market: This is one of
the challenge which is being faced by Geely’s Volvo that
they have limited access to international talent because of
limited budget. Expansion into international market can help
to grab the high level talent.

STRENGTHS:
 Focus on Research & Development activities: Geely’s
reputation of having a very good Research and Development
platform for its products is quite high and with the
acquisition of Volvo and its skilled manpower and facilities,
they would be able to put a greater focus on innovation
 Reputation in cutting-edgy safety technology: Volvo is
known world-wide for the superior security features in its
vehicles. They are highly rated across all safety standards and
is one of Volvo’s greatest strengths in the eyes of the public.
 So, if Geely acquires Volvo, then Geely’s advanced level of
technology combined with Volvo’s high safety standards can
allow both of the companies to accomplish unrivalled
advancements.
 High demand in China of Luxury vehicles: China’s demand
of automotive vehicles had grown from 330,000 to 7 million
in just 20 years and luxury vehicles were amongst the top
category. Thus, with Volvo producing luxury vehicles, Geely
would be able to tap into that market segment as well if they
were to acquire Volvo.
 Government’s support in Geely’s Volvo acquisition: For the
Chinese government, Geely-Volvo acquisition was a big step
towards achieving technological advancement through
foreign investments. For the Government of China, this step
could mean building a roadmap towards achieving new levels
of technology and collaborations with western high-tech
firms.
 Acquisition would double the number of sales worldwide: Li
Shufu (Founder - Geely Inc.) said that with the acquisition of
Volvo, they could increase Volvo’s worldwide sales twice as
much by a number of 600,000 within the next five years.
Thus, this was to be yet another big strength of Geely if they
GELLY’S ACQUISTION OF
went forward with the Volvo acquisition.
VOLVO ASSIGNMENT #GROUP
02
MEMBERS
AREESHA
Areesha MEMON CSR

BILAL