- 1 Quick Stats on 3M Company
- 2 About 3M Company
- 3 Strengths In The SWOT Analysis Of 3M
- 4 Weaknesses In The SWOT Analysis Of 3M
- 5 Opportunities In The SWOT Analysis Of 3M
- 6 Threats In The SWOT Analysis Of 3M
- 7 Limitations of SWOT Analysis for 3M
- 8 Weighted SWOT Analysis of 3M
- 9 The most important thing to consider when writing an effective 3M SWOT Analysis
- 10 References Books on 3M SWOT Analysis
- 11 Conclusion
SWOT analysis by 3M examines the brand’s strengths, weaknesses, opportunities, and threats by its strengths weak points, weaknesses, opportunities, and threats.
When you look at the 3M SWOT Analysis, the strengths and weaknesses are internal variables, while the threats and opportunities are external aspects.
SWOT Analysis is an established management system that allows companies such as 3M to evaluate their business and performance in comparison to their rivals. 3M is among the most prominent companies in the conglomerates market.
The table below provides what is the 3M SWOT (Strengths weaknesses, Strengths Threats, Opportunities) and the most prominent 3M competitors, and also its segments, target market, and positioning as well as its Unique Selling Proposition.
Quick Stats on 3M Company
|Founder||Dr. J. Danley Budd, Henry S. Bryan, William A. McGonagle, John Dwan, Hermon W. Cable|
|Origin||Maplewood, Minnesota, US|
|No. of Employees||94,987|
|Market Cap||$103.48 Billion (2021)|
|Annual Revenue||$32.18 Billion (2020)|
|Net Profit||$5.38 Billion (2020)|
About 3M Company
3M Company is a multibillion-dollar American multinational corporation that has interests in industry and workers’ safety, US health care, and consumer goods.
With a variety of names, the company makes more than 60,000 products that are used in businesses, homes and hospitals, schools, as well as other sectors.
3M was founded as a mining company on a small scale located in Northern Minnesota, by 5 businessmen, later referred to as the Minnesota Mining and Manufacturing Company in the past century back.
Our products are now an international powerhouse, aiding people from all over the world to live more fulfilling lives.
Strengths In The SWOT Analysis Of 3M
❤️ Diversification: Through operating in multiple industries and markets around the world, 3M has effectively diversified its business. This can be beneficial by reduction of the cycle risk and effect of market declines. This helps to ensure stability to the financial situation and allows for more precise planning and accurate evaluation of the market and product development.
❤️ Innovative: 3M has a strong name in the field of product innovation and is a major investor in Research and Development. This gives them the advantages of more effective new products, better-differentiated products, and better market access. Furthermore, since 3M has built up expertise across various industries and their collective research and development expertise can be utilized across the entire organization.
❤️ The brand’s equity: 3M is a long-time presence in the marketplace and has also developed distinct brands. They have a high recognition of their brand and a strong value in markets in the markets they are operating. The brand equity allows them to gain access to channels, expand their market share, and adopt an approach to pricing that is premium in a variety of markets.
❤️ Retailer relations: Across the globe, they’ve established a number of reliable distribution channels, and built up strong channels. This gives them stability and a low-cost structure and lets them more effectively introduce new products, develop their brand, and ensure an excellent in-store positioning and the uptake of the point-of-sale materials.
❤️ Financial backing: Just like many big companies, 3M has the backing of solid cash flows, profitability, and reserves. They are able to take on an improved market position and be involved in market expansion, innovation as well as brand building, and competition.
❤️ Global operations: Because they are present in 65 countries or more, 3M has greater sources of revenue and offers increased opportunities to increase organic growth as well as providing more cross-learning across the company, particularly in the area of the success of competitive marketing strategies. In 2013, the company generated around two-thirds of its revenue from outside the United States.
❤️ Global experience: Alongside operating across many different countries (above), 3M has acquired a vast knowledge of the entry of new markets and countries markets, usually by creating local manufacturing facilities in local markets, sourcing local suppliers, and gaining access to relevant distribution channels for marketing.
Weaknesses In The SWOT Analysis Of 3M
❤️ Diversity: Diversification of operations can be both a strength and a weakness. It’s also a drawback since it makes the business compete in multiple fields and markets, and also with multiple sets of competitors. Many of their direct competitors will have an advantage over them because they are industry experts.
❤️ Multi-Competitors: 3M is likely to be confronted with a wide range of competition across a variety of markets. Although this alone could pose a risk, however, it also highlights weaknesses in the way the company is structured. This is a portfolio business decision that has resulted in this scenario.
❤️ Insufficient focus Lack of focus: The company would require experts across a wide range of industries, technologies technological developments, markets, and the list goes on. In the end, they are unable to concentrate on a particular field and would have their resources spread across the various requirements.
❤️ Subject to all environmental influences: being in different industries and markets, 3M needs to proactively be aware of all environmental influences and continuously adjust their strategies in response to the changing environment. This means that they will be less stable in their daily operations and plans.
❤️ Continuous investment requirements: As an important manufacturer and maker of technology, and known for its the development of new products and innovations, 3M would be required (from an economic perspective) to continue investing in various expansion and development areas. This will result in making a more cost-effective structure for the business.
Opportunities In The SWOT Analysis Of 3M
❤️ Natural growth in the market: 3M could have numerous opportunities across a variety of industries. For instance, they’re very involved in security, health care and electronics, each of these is currently in the growth stage in a variety of countries.
❤️ Development of new products: Working in multiple industries and markets, there are always opportunities for expanding the product range and targeting new segments of business and customers. This is an area of opportunity that 3M is generally looking to tap into.
❤️ Further market development: Even though they are present in more than 65 countries There are others that they could consider joining especially when emerging economies gain more purchasing power and are more financially economically viable.
❤️ Potential acquisitions: Being a broad business, 3M could join a range of different industries through the acquisition of a large company. In contrast to a firm that is more focused the strategic move of this one would fit within the scope of 3M’s as an integrated conglomerate.
Threats In The SWOT Analysis Of 3M
❤️ Multi-competitors: 3M faces the challenge of competing against a wide range of rivals. This could be larger than the competition risk faced by specialist companies that only have to focus on a single industry or market. This risk could have the consequence of 3M being continually in competition for market share by specialization or niche companies.
❤️ Politics: When operating in multiple countries, there’s always a chance of changes in the attitude of political leaders to foreign businesses. Thus, certain countries occasionally can pose a major risk to 3M and its ability to operate in that particular location.
❤️ Changes in currency: The risk is likely to be only a minor risk to 3M and they’d probably have the appropriate financial control measures in place. However, large fluctuations in the currency could influence the profit margins from certain operations at times.
❤️ Environmental concerns: As a manufacturer across a range of industries, the shift to more environmentally-friendly manufacturing may be a difficult transition for the firm or may result in an increased cost structure.
❤️ Technology is constantly evolving: The speed of technological advancement does not just affect individuals and consumers as well, but also the supply and manufacturing process. Continuously staying current with the latest technology could be the cost of production and the requirement to frequently examine existing processes.
Limitations of SWOT Analysis for 3M
While SWOT analysis is a popular tool for strategic planning, SWOT analysis is used widely to plan strategic strategies however, it does have its fair share of drawbacks.
- Certain characteristics or aspects that an organization has can be both strengths and weaknesses at the same time. This is among the biggest drawbacks of SWOT analyses. Changes in environmental regulations can be an issue for the business, but however, it could also be an opportunity in the sense that it allows the company to compete in a position to compete or even gain an advantage over competitors when it can produce products quicker than its competitors.
- SWOT is not able to show you how to get a competitive edge It is not a strategy to gain a competitive advantage, therefore it should not be a complete solution.
- The matrix is merely an idea to begin discussions on how suggested strategies can be put into practice. It also provided an evaluation window, but not an implementation plan based on the strategic competitiveness of 3M.
- It is a static analysis that analyzes the current conditions with only a few potential modifications. When circumstances, capabilities threats, strategies, and circumstances evolve, the dynamics of a competitive setting cannot be analyzed in the form of a single matrix.
- SWOT analysis can make a firm over-emphasize one external or internal aspect when formulating strategies. There are interrelations among important external and internal elements that SWOT doesn’t reveal, which could be crucial in determining strategies.
Weighted SWOT Analysis of 3M
Due to the previously identified weaknesses of the SWOT analysis/ matrix, the corporate management has decided to assign an appropriate amount of weightage for each of the strengths and weaknesses of the company.
Companies also evaluate the probability of events happening in the near future and what the effect will be on the company’s performance.
This technique is known as the Weighted SWOT analysis. It’s better than a simple SWOT analysis since using the Weighted SWOT Analysis, managers are able to concentrate on the most important aspects and eliminate the less important ones.
It also helps solve the problem of the long list, which causes organizations to make an extensive list, but none is considered to be important.
The most important thing to consider when writing an effective 3M SWOT Analysis
– Identifying the competencies that are vital to the success of 3M in the Constr. the industry of Supplies and Fixtures.
Find out what are the advantages and disadvantages of 3M as best you can.
Make sure you give the appropriate weightage to the many factors that influence 3M’s growth in the bottom line and topline.
Are there individuals who are crucial to your organization? They could alter the balance between the strengths and weaknesses of the organization.
Which strategies 3M can use to mitigate the risk that arises from weak points of the organization as well as threats from the macro-environment.
References Books on 3M SWOT Analysis
3M (2018), “3M Annual Report”, Published in 2018.
Euromonitor (2018), “Capital Goods Sector Analysis “, Published in 2018.
A. D. Chandler, Strategy and Structure (Cambridge, Mass.: MIT Press, 1962)
L. Wrigley, Divisional Autonomy and Diversification (Ph.D., Harvard Business School, 1970)
M. E. Porter, Competitive Strategy(New York: Free Press, 1980)
O. E. Williamson, Markets and Hierarchies(New York: Free Press, 1975)
R. E. White, Generic Business Strategies, Organizational Context and Performance: An Empirical Investigation, Strategic Management Journal7 (1986)
After careful examination of the swot study of 3M, we’ve come to the conclusion that 3M is the most powerful conglomerate company in the world.
The competition, the cost of litigation as well as the shortage of resources are just a few of the major issues.
3M should use its resources to increase its product portfolio, and remember the rules when making choices.
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