3m Executive Summary

Although the company did show an increased gross profit of $8,255,000 with $6,358,000 less Net Sales in 2013 versus 2012, that increase is due to the reduction in product Cost of Goods Sold by $14,613,000. Since increases in product price will negatively affect sales, one of management’s primary goals is to keep prices stable. This objective is achieved through implementation of cost cutting programs, investing in more efficient equipment, and automation of more steps in the production process.

the company’s margins have shrunk by 10% in the past year due to rising costs and growing competition.

This would include human abilities, process capabilities, financial resources, products and services, customer goodwill and brand loyalty.

Change in revenue criteria increased both sales and cost of sales by $ 28 Million. The profit margin was decreased from 1.55% to

computer hardware sector. The company has a high brand value in the market due to its cost

Additionally, the company will deliver, invest, and brand their products in every major market across the

This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .

New Product Development : the aggressive investment strategy into R&D division led to speed in releasing new products in the market. This gave the company higher ROI returns projections. The faster cycle of innovation led to multiple product availability in the market which led to further increasing the gap between them and the competitions and also the company indulged in manufacturing self brand products rather than Co-branded or Partnerships.

Operating profit margin figures in the table above show the return from net sales[13]. However profit margin ratios are high enough for the 3 years, there is a fall from 12.86% to 11.26% during 2011-12. Sales revenue increases with a higher rate than gross profit so there is a poor

     Strong Products and Brands Global Presence High ethical standards High safety standards Highly influential market segment

The needs to contain costs and benefits of leveraging strong brands through acquisitions, merges, alliances, licensing by the big player while attempting to gain a bigger share or to control the market.

This could be company strengths, current market penistrationpenetration, supplier agreements and simply all of the business and/or customer loyalties that they have had. Also in today’s market the consumers are looking for the “next new thing”. They no longer want an extension of what they already have. The consumers are loyal to a company, but can quickly change focus if a company fails to continue to change to meet their needs and/or demands for change.

There are a few keys that tend to make companies successful. Knowledge of the product tends to be a major factor in the success of these firms since people who are using their products are often putting their lives at risk if the product breaks down. Knowing the right gear when people ask questions and knowing exactly how the gear needs to work when designing a new piece is a key to building customer loyalty and trust. The ability to alter your output of goods and services also plays into the success of these firms. Companies need to be able to adjust, maybe selling more rain gear during a rainy season or even seasonally adjusting to putting out skis and sleds rather than kayaks during the winter. These firms also tend to specialize, appealing to niche markets is a good way to keep sales up at least in one sector.

            Other environmental influences, such as competition, may fuel the company’s desire to create more and better products that could well determine their location and standing in the global market. Increase in the number of competitors for the same line of products may mean that there

The principal company has developed unique characteristics that its competitors don’t possess. The attributes that the focal company has must have a certain life in the longer run, the competitors must not be able to duplicate them easily else it wont be sustainable. Competitive advantage is the key element of superior performance. It determines survival and placement of the firm in the market and leads to super profits, which is the ultimate goal of any company. How a company derives the strategy to attain and maintain competitive advantage depends on the value of goods and services provided by them, the products quality, characteristics and benefits for which the consumer is willing to pay. Products of superior value will result in above average returns For example