Volvo maintains its success by changing its strategy. In the first time that Volvo came into this market Volvo used the differentiation strategy by offering unique features luxury bus to the market. This is a blue ocean area in the market because nobody serves this product. However, when there the competitors (such as Tata Motors, Ashok Leyland, Mercedes and Isuzu) came in, Volvo changed its strategy by using cost leadership strategy by opened a new state-of-the-bus factory in Bangalore which is the most efficient bus factory of Volvo.
However, if Volvo use only cost leadership strategy, in the future, it will has any substitute product and this will bring the phrase “taking a Volvo” which has become synonymous with choosing a luxury bus service in India is only the habitual for the use of a word. Then, Volvo must invest in its research and development to make its product difference from the competitors.