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.

3M Satisfy the tests of core competency

3
 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 lines
1997 30% of total revenue were generated from products introduced within
past four years
1998 Revenue and profits both decline
2001 Launch of six sigma, a quality control and improvement initiative to cut
costs. Out of 75000, layoff of 6500 workers
2002 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 expanding
2005 Realization to generate growth, maintain premium margins and managing
company's portfolio
 PAST STRATEGY
• 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
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
 Strategy- Ansoffs matrix
• The Ansoffs matrix
Market
Product Old New
Old Market Penetration Market Development
New Product Development Diversification

• 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.

11
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.

12
 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

13
THANK YOU!!

14