Strengths Of 3M

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Introduction The 3M company, originally known as Minnesota Mining is an America Multinational Conglomerate Corporation founded by five businessmen namely, Henry Bryan, Herman Cable, John Dwan, William McGonagle and Dr. J. Danley Budd 114 years ago (3M Corporate Headquarters, 2016). Based on 3M’s financial reports last year, the company generated $30.3 billion for its manufactured products (3M Corporate Headquarters, 2016). 3M has a global standing in the following businesses shown on the diagram below: Diagram extracted from 3M Company’s competitive peers include General Electric (GE) and Honeywell (HON). Those industrial conglomerates are leading companies…show more content…
Some of the established products include Filtrete, Nexcare, Scotch, Post-It and Scotch-Brite (3M Corporate Headquarters, 2016). This helps in reducing cycle risks and provides significant financial stability 3M Corporate Headquarters, 2016). Diversified technology enables precision in planning and strong evaluation of the market trend (3M Corporate Headquarters, 2016). Global operations Having global operations allows 3M to gain entry into the relevant marketing distribution channels through numerous wholesalers, retailing chains and distributors in numerous trades that generate greater more growth opportunities. Since 3 years ago, 3M was generating around two thirds of its revenues from outside of the United States, contributed by the success of competitive marketing strategy initiatives (3M Corporate Headquarters, 2016). 3…show more content…
Potentially, factors such as inability to identify new products and delay in obtaining intellectual property rights may affect the company’s growth (3M Corporate Headquarters, 2016). 5 Changes in credit ratings As stated in 3M’s 2015 report, it was given an Aa3 credit rating (negative rating) by Moody’s Investors Service (3M Corporate Headquarters, 2016). 3M’s negative ratings have served to lower its borrowing costs and facilitate access to a variety of lenders (3M Corporate Headquarters, 2016). Failure to maintain positive credit ratings would affect its capital cost and access to capital markets (3M Corporate Headquarters, 2016). Opportunities Market Demand 3M’s diversified range of products provides opportunities for the company growth. The medical industry is expected to grow from increase from 17 percent to 22% in next 5 years (3M Corporate Headquarters, 2016). Hence, 3M could expect to leverage its products in new markets that would sustain its profits (3M Corporate Headquarters,

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