The core business of 3M is the production of adhesive tape. However this activity subsequently declined because of various factors including packaging, health, industry and transportation. It is through the acquisition of the production technology of 3M abrasives that it was subsequently able to innovate and expand its expertise in the areas mentioned above.
When a company operates the segmentation of its activities (DAS homogeneous segments) in several markets, it provides a concise overview of its activities. From this understanding of what exists, the company is able to make strategic choices and trade-offs in terms of resource allocation. The DAS are defined in terms of product / market and characterized by a number of common points (suppliers, competitors, consumers, technology, etc). The aim is to define the relevant criteria of segmentation.
It is particularly important to differentiate the marketing segmentation criteria that are used to define the marketing mix (composition of groups of sub-groups of consumers with different needs to satisfy). The strategic segmentation criteria used to divide the company's activities into segments homogeneous governed by key factors of identical success.
We note that there is a misallocation between the poles "Signs, graphic communications and optics", and the "electronics, electricity and communication." It would move some posts and rename these two poles.
Tags: 3M, business of 3M, strategic analysis of 3M
[...] There are currently 50,000 3M products in 2000 brands. - In a market based primarily on the technique, it is essential to have a unique and recognized expertise. In fact, 3M is a pioneer in its field, which gives it a competitive advantage (invention of the tape and post-it). The acquisition of this technology can be a serious barrier to entry for new entrants. - Participative management: The capacity for innovation from 3M is the result of a management system centered on man and not just on the control objectives. [...]
[...] For example, products for the general public have the support of strong brands. Moreover, one can notice the difference in price ( 0.98 €) for a similar product, between the Scotch-Brite brand from 3M, and the Carrefour brand. 6.In your opinion, what are the activities that 3M could develop? The 3M group is an example of the company that managed to permeate the entire organization with a spirit of innovation. Indeed, the company "values the efforts of researchers," allowing them to devote 15% of their time on a personal project that could benefit the company. [...]
[...] In contrast, the pharmaceuticals business is a domain in the health pole that 3M could leave. To make these changes in activities, the 3M group is based on constant innovation: we can assume that the R&D budget is important. Indeed, deep pockets are implemented (the management encourages new activities of the time researchers are devoted to personal projects, etc.). Therefore, for internal growth to be possible, the company should develop new activities. To this we must not forget another lever of growth (acquisitions) made up of transfers and acquisitions (nine acquisitions in 2006). [...]
[...] What is the business of 3M? The heart of 3M's business is the production of adhesive tape. That's its core business. However, this activity diversified through a variety of areas ranging from packaging to health, through industry and transport. It is through the acquisition of the production technology of abrasive that 3M could subsequently innovate and expand its expertise in the areas mentioned above What are the strategic areas? When a company operates in several markets, the segmentation of its activities into SBAs (homogeneous segments) provides a concise overview of its activities. [...]
[...] On the "products and services," 3M has its major hubs. It is specified in the text they are 7 in number : "The 3M Group is divided into seven areas." However, there are items we find, contrary to what is indicated just above, not seven, but eight major categories. Note that there is a maldistribution between the pole "Signage, and visual and graphic communication" and the "electronic, electrical and communication" pole. Indeed, it would move some items and rename these two poles, and bring together the largest center of communication: (images, advertising, promotion); (graphics solutions); (traffic signals). [...]
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