The Rejuvenation of Volvo

Abstract

Ford Motor Company’s Premier Automotive Group (PAG) is a unique setup in the car industry. Four small but global brands — Aston Martin, Jaguar, Land Rover and Volvo — clearly positioned in the premium segments of the market. Four businesses that individually would struggle to survive in the modern automotive world, but by working together within the Ford Motor Company are able to generate the economies of scale to compete against the might of their one million unit competitors. In turn, by using four brands to sell 700,000 cars, instead of just one, we have a level of distinctiveness in the marketplace that is a real competitive advantage in a world where increasingly brand strength, brand purity and customer loyalty rule.

The core promise of a brand is maximised when differentiation permeates beyond the product into the entire relationship with the customer.