 ANALYSIS OF PROBLEMS IDENTIFIED :

1. MULTIPLE FOCUS AREAS

As 3M is operating in number of fields including electronics, security, transport, office,
healthcare, manufacturing etc. , so it have number of areas to focus. The company requires
expertise in all the segments, technologies, markets. Because of the multiple focus areas it
cannot pay attention on particular area and have to constantly stretch their resources across
these segments to fulfil requirements. This is one of the problem company is dealing with
because of diverse business operations.
2. CONTINUAL INVESTMENT REQUIREMENTS
3M is a significant contributor in manufacturing and a utilizer of technology. As it is well
known for innovation and development of new products, so it have to continually invest in
development and expansion areas. This approach is increasing cost structure of the company.
Increasing cost structure and competition is impacting the sales of the company’s product and
revenue.

3. COMPETITION IN THE INDUSTRY

3M is facing stiff competition from the other players in the industry. Other players including
General Motors, Emerson, and Honeywell all are also providing their best in all their
products because of which 3M is facing problem of reduction in revenue. They are selling
their products at comparatively less prices to increase their sales. So it requires to outstand
and give its best by providing high quality services.

 RECOMMENDATIONS AND SUGESSTIONS

I think to tackle the above mentioned problems, Company can adopt many strategies like

It can increase the number of authorized distributors and sales representatives

for different products in fields in which company is operating. For example, the
company has distributors in Japan, Canada, Russia, and Singapore, among
other countries, for data centre solutions, lighting contactors, transformers,
and other products. As Different markets and different products need different
management strategies for selling company’s products. So these distributors
and sales representative will help in boosting the sales of its products by
understanding the needs of clients according to the place of operation.
Secondly, to have competitive edge over other competitors, it can use different pricing
strategies

 Value-based strategy
 Market-oriented strategy
Market-oriented strategy is that in which prices are set after assessment of prevailing market
conditions. For instance, Prices for its appliances are near to the prices of other competitive
firms. This pricing strategy supports competitiveness and is appropriate to markets where
customers have significant price sensitivity.

Value-based pricing focuses on the uniqueness of its products. For example, 3M sets
relatively high prices for some of its healthcare products and aviation products. In these
products where value-based pricing is applied, customers are willing to pay higher for
products that have higher value.

These pricing strategies will help the company to have competitive edge over all other
competitors.