3m Executive Summary
Strengths ■ Over 50,000 patents extended over 13 technology platforms ranging from abrasives to polymers ■ Global company – companies in over 60 countries and 139 plants worldwide ■ Strong recognition for standard innovations with practical applications ■ Operational efficiencies - cost of sales declining and margin % increasing over the years ■ IBD’s new strategy was to transform from margin expansion to top line growth ■ Corporate brand strength and technology behind its products with exclusive supplier status, product driven organization with strong R&D direction, and geographic specialization ■ Through lean programs IBD is in progress to shorten the time to go to market ■ IBD is acquiring product specialization in tapes and adhesives are 50%-60% division turnover and abrasives are 40%-50% ■ Access to experience and knowledge pool of the worldwide organization and profiting from close connection in the marketing strategies of over 50 divisions in 3M ■ Natural fit with the culture of the Special and Niche categories ■ Groomed employees grow and develop to become product experts
Weakness
■ IBD had not concentrated on the MRO segment because it was fragmented with slight brand loyalty ■ Sales reps were not accustomed to dealing with large corporations driven by networks, procedure and protocol but to store managers of small to medium sized businesses ■ IBD did not obtain customer specialization ■ Weak marketing and sales strategy for National accounts ■ Quick decision making is lacking because 3M is a large corporation and a bureaucracy ■ 3M’s had not changed in terms of product application, service delivery mechanisms, customer expectations and logistics requirements as it has in the Industrial sector ■ IBD did not have cadre of “channel” specialists to complement the product specialists ■ IBD does not have an incentive program with reduction in supply chain costs of the large National players ■ Lacked to be “best in class”
Weakness
■ IBD had not concentrated on the MRO segment because it was fragmented with slight brand loyalty ■ Sales reps were not accustomed to dealing with large corporations driven by networks, procedure and protocol but to store managers of small to medium sized businesses ■ IBD did not obtain customer specialization ■ Weak marketing and sales strategy for National accounts ■ Quick decision making is lacking because 3M is a large corporation and a bureaucracy ■ 3M’s had not changed in terms of product application, service delivery mechanisms, customer expectations and logistics requirements as it has in the Industrial sector ■ IBD did not have cadre of “channel” specialists to complement the product specialists ■ IBD does not have an incentive program with reduction in supply chain costs of the large National players ■ Lacked to be “best in class”