Distribution strategy of Volvo Cars last-mile logistics with direct to end-consumer sales

Abstract

The development of e-commerce has evolved fast during the past decades within all commercial products with several different pick-ups and delivery options, return options, and interaction of both online and offline interaction. Companies are required to adapt to new trends and customer behavior which is also affecting the sales and distribution of cars. The impact of Covid-19 has enabled companies to move into more digital interaction with its customers due to limited physical interaction, which has also led to a demand for better remote communication. The thesis has investigated the direct-to-consumer strategy, including what digital and operational capabilities are necessary to establish a successful last-mile delivery of cars in the automotive industry. The data collected through the literature review and interviews complemented each other and was presented in the empirical findings. From the empirical findings, it can be concluded what and how trends and customer behavior shapes OEM's business model, challenges and opportunities with benchmarking last-mile delivery services in the e-commerce industry, and what digital and operational capabilities can support last-mile logistics. Furthermore, the SWOT analysis and Porter's five forces regarding the empirical findings were discussed in the last chapter. These models provided valuable insights into Volvo's strengths, weaknesses, opportunities, and threats regarding implementing the direct-to-consumer strategy and last-mile delivery services. Additionally, Porter's five forces give a broader picture of shaping strategy to be profitable in a market characterized by fierce competition.