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Core Competency of 3M
• Innovative technology portfolio.
• Superior manufacturing process capabilities.
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EXISTING STRATEGY
3M Existing Strategy
• Growth strategy based on enhanced core competency and
building long-term competency.
• Technology and innovation as the engine to grow and develop
existing markets through disruptive (natural substitute)
technologies, logical developments and extensions of existing
products, and "out of the garage" technology developments
• Grow core business through the strength of constant
reinvention, stronger key customer partnership,
customization, solving customer needs, entering niche
segments, and capturing new segments Emphasize product
localization using mix of brands and local acquisitions
• Speed growth through strategic licensing, investment in small
tech companies, University alliances, and extensive
promotion of invention
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Existing Strategy Cont…
• Maintain innovative culture - follow 15% rule
• Accurately measuring sales growth potential - demand and capacity
to benefit from scale in core product categories* and to gain
relative share in targeted markets
• Accurate capacity planning
• Competitive Advantage - unique shared technology model
• Strategically manage portfolio
• Maintain premium margins
• Divestiture or closure where scale or relative share cannot be built
over time, differentiation not possible through technology, or base
technology at "end life" and cannot be refreshed
• "Tuck in" Acquisition strategy that closely reflects and supports
strategic plan and adjacencies, offers quick value by quickly adding
technology to company, and fills openings in geography and
channel capacity
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FUTURE STRATEGY
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Strategy- Ansoffs matrix
• The Ansoffs matrix
Market
Product Old New
Old Market Penetration Market Development
New Product Development Diversification
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Strategy- Michael Porter Params
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SWOT ANALYSIS
STRENGTH WEAKNESS
• Strong R & D capability • Weak personal care segment
• Innovative Company • Low margins in the US
• Diversified business portfolio
• Robust industrial business
OPPORTUNITY THREAT
• Growing demand for LCDs • Growth in private labels
• Acquisition of brands • Higher oil prices
• International expansion • Exchange rate fluctuations
• Threat of New entrants
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THANK YOU!!
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