PRESENTED BY: GROUP 3

MITHILESH KUMAR (ROLL NO 34)

NISHANT MEHTA (ROLL NO 42)

PRIYANKA HANS (ROLL NO 46)

RAJNEESH PANWAR (ROLL NO 50)

YAMINI GOGIA (ROLL NO 74)

Facts

• Minnesota Mining & Manufacturing Company (3M) was formed in 1902.

• Over 50,000 products of high/low technology.• 3M markets are Electronics, health care, telecommunications,

industrial, consumer and office, safety and other markets.• Popular brands such as Post-it, Scotch-Brite and 3M Scotchshield.• 3M did not fall under any normal industry classification because of

End-user segment for the products are diverse.• Innovation is the USP

2

Core Competency of 3M

• Innovative technology portfolio.• Superior manufacturing process capabilities.

3

3M Satisfy the tests of core competency

Evolution of 3M Strategy

1907-09 3M designed customer oriented brand of salesmanship.

1921 3M invented a waterproof sandpaper & purchased the patent and removed defects.

1923 3M developed Scotch tape.1930 3M funneled 45% of its profits into new products & tripled in size.

1947 Scotch magnetic audiotapes were introduced. 3M grew almost 20-fold.

1950 Further innovation of dry-printing photocopy process.

1951 Invention of Thermofax.1952 3M had surpassed the $100 million mark & was employing some 10,000

people.

1956 Scotch gard fabric and upholstery protector.1958 Scotch-brite scouring pads.1959 3M 20th consecutive year of increased sales.

1963-67 It doubled in size, becoming a billion dollar company.4

3M Strategy Cont…..1970 Number of obstacles interfered with its growth & 3M lost the cassette tape

market.1980 Major competitors threatened 3M on all fronts.1990 Innovation was stagnating, most of the innovations were extension of

existing product lines1997 30% of total revenue were generated from products introduced within

past four years1998 Revenue and profits both decline2001 Launch of six sigma, a quality control and improvement initiative to cut

costs. Out of 75000, layoff of 6500 workers2002 Acquisition of Corning Precision Lens , the world’s leading supplier of

optical lenses.2003 Reorganization within the company, split of 3 largest divisions of the

company i.e. transportation, graphics and safety.2003 Major realignment of R&D operations.2004 Anemic revenue growth while broader makets had been expanding2005 Realization to generate growth, maintain premium margins and managing

company's portfolio

• Developing technology-oriented solutions to satisfy customer needs.

• Filling market niches.• Abandoning markets where desired prices (and

margins) cannot be maintained.• Generating a high percentage of sales from new

products.• Establishing and fostering a culture of Innovation.

6

PAST STRATEGY

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

8

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

9

FUTURE STRATEGY

10

11

• The Ansoffs matrix

• 3M leverages its existing resources and capabilities. • 3M seeks to achieve growth with existing products in

their current market segments, aiming to increase its market share.

Strategy- Ansoffs matrix

Market Penetration Market Development

Product Development Diversification

Market

Product

Old

New

Old New

12

Strategy- Michael Porter Params

•3M has adopted differentiation strategy as it is Patenting all its product to have the uniqueness in the market.

•Entering into New and emerging market to broad market scope.

13

SWOT ANALYSISSTRENGTH WEAKNESS

• Strong R & D capability• Innovative Company• Diversified business portfolio• Robust industrial business

• Weak personal care segment• Low margins in the US

OPPORTUNITY THREAT

• Growing demand for LCDs• Acquisition of brands• International expansion

• Growth in private labels• Higher oil prices• Exchange rate fluctuations• Threat of New entrants

14

THANK YOU!!