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Milestone Three: 3M Company Swot Analysis

3M Company Swot Analysis

Lauren Prather

Southern New Hampshire University

MKT 500: Marketing Strategies

Professor Heather Teague

11-27-2022
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Milestone Three: 3M Company Swot Analysis

Introduction

There are numerous strengths that 3M has that enable it to thrive in the marketplace,

which makes it one of the leading companies in its industry. In addition to helping it to protect its

market share, these strengths also allow it to expand into new markets. They also enable it to

penetrate new markets more effectively. A SWOT analysis helps an organization identify the

strategic approaches to maximize opportunities, deal with threats, build on and protect strengths,

and eliminate weaknesses. An analysis of 3M's SWOT is below.

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Milestone Three: 3M Company Swot Analysis

3M Company Swot Analysis

Strengths

Innovation and Corporate Social Responsibility

 In order to maximize profits and achieve long-term success, a company must be able to

innovate. Without innovation, it is nearly impossible to survive in the modern

marketplace. 3M is known for its product innovation and heavily invests in research and

development. For almost a century, 3M has been innovating. (3M Company) As a result,

it has produced more than 60,000 products. In addition to innovation, 3M is an

organization that is socially and environmentally responsible. For example, the company

adopted the pollution prevention program 3P (Pollution Prevention Pays) back in 1975.

(3M Marks 35 Years of Pollution Prevention Pays, 2010)

Finance and Distribution

 It is pertinent to note that 3M has solid cash flows, profitability, and reserves. It enables

them to adopt a stronger market position and to engage in innovative activities, market

expansion, brand building, and competitive actions.

 Distributors and dealers market the company's products and engage in sales training so

that customers may understand how to get the most out of the items. As a result, they

have improved stability and a lower cost structure, allowing them to launch their products

successfully.
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Milestone Three: 3M Company Swot Analysis

Brand recognition and a Strong Product Portfolio

 As a global brand with a history of more than 65 years in the marketplace, 3M has

developed many individual solid brands throughout its extensive market presence. As a

result, there is high brand awareness and substantial brand equity in the company's

markets. (3M Company)

Research and Development

 3M's commitment to research and development is why the company has existed for more

than 115 years. The company has spent billions of dollars on research and development

every year in recent decades. (3M Research and Development Expenses 2010-2022 |

MMM, n.d.)

Weaknesses

Demand Prediction

 3M needs to have a better record of forecasting product demand than its competitors to

compete effectively. Unfortunately, many opportunities have been missed due to the

company's incompetence. Consequently, this adversely affects the company's long-term

growth. (Fernández, 2022)

Constant Investments

 The company is continually investing in different areas of development and expansion to

maintain its position as one of the leading manufacturers and technology users.

Litigations

 Approximately 300,000 military veterans have filed lawsuits against 3M over defective

Combat Arms Earplug Version 2 (CAEv2) causing hearing loss and tinnitus, one of the
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Milestone Three: 3M Company Swot Analysis

largest mass torts in American history. A $9.1 million settlement was reached with the

DOJ. (Morrow, 2022)

High Attrition Rate

 3M experiences a higher attrition rate than its competitors and spends more on training

and development. There is nothing more exciting than expanding a business as it grows.

This, however, requires an increase in the workforce

Opportunities

Strategic Alliances, Partnerships

 A series of acquisitions and marketing strategies have enabled 3M to expand its global

operations, including Softmed Systems, Meguiar's, Archon Technologies, and Scott

Safety. In the future, 3M may acquire more pre-established brands as it expands its

market share.

Product and Market Development

 A new consumer behavior trend could allow 3M to enter a new market, allowing the

company to diversify into new product categories and create new revenue streams.

Technological Innovation

 For 3M Company to remain competitive, it must consider technological innovations. By

focusing on emerging technological innovations, 3M Company can increase its market

share in markets where technological advancements have yet to reach maturity.

Threats

Globalization
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Milestone Three: 3M Company Swot Analysis

 Globalization of the economy has many benefits for multinational companies. While this

is a great advantage, it also comes with many risks, such as trade regulations and political

conflicts. 3M needs to be ready to face such challenges if they occur.

Competition

 3M competes with companies in a wide range of industries. Johnson & Johnson,

Honeywell International, and General Electric are among 3M's top competitors. These

companies pose a severe threat as their market share and profits increase. In such a

competitive market, 3M must continuously innovate. (Top 3m competitors and

alternatives, 2022)

Environmental Policies & Regulations

 3M Company may face different liability laws and claims in foreign countries as policies

change. Therefore, to enter a new market, 3M must thoroughly analyze the new market's

legal environment and regulatory framework.

 Changing political attitudes toward foreign companies are always a concern when

operating internationally. Consequently, certain countries may, from time to time, pose

significant risks to 3M's ability to conduct business.

Loss of Partnerships

 The Russian-Ukrainian conflict has forced several multinational companies to suspend

operations in Russia. 3M used to generate a significant portion of its revenue from

Russia. Due to the war between Russia and Ukraine, 3M suspended operations in Russia.

3M has lost money as a result. (Staff, 2022)

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Milestone Three: 3M Company Swot Analysis

Competitive Analysis

General Electric is one of the world's largest and most diverse companies. Through its

General Electric and Hotpoint appliance brands, it has become a leading seller of home

appliances. In November 2021, the corporation announced that it would split into three public

entities. These three new entities will focus on energy (renewable energy, electricity, and

digital), aviation, and health care. According to General Electric's market cap as of November

2022, it is worth $96.30 billion. (General Electric (GE) - Revenue, n.d.) Moreover, the company

generates $75.13 in revenue (TTM). (General Electric (GE) - Revenue, n.d.) In addition to aircraft

engines, they sell electrical distribution, electric motors, energy, finance, healthcare, software,

and wind turbines. According to data provided by S&P Global Market Intelligence, General

Electric (GE 0.31%) shares soared 25.7% in October. (General Electric (GE) - Revenue, n.d.)

General Electric expects organic revenues to increase by low- to high-single digits in 2022 due to

a strong market month. 

Honeywell International develops and sells a wide range of products as a global leader in

energy, safety, security, productivity, and urbanization. In addition to aerospace systems,

industrial products, and engineering services, the company has four strategic business units:

Aerospace, Building Technologies, Performance Materials & Technologies (PMT), and Safety &

Productivity Solutions. The company's target market comprises automation and control systems

users, climate control equipment, aircraft manufacturers, airlines, process industries, and

passenger and commercial vehicle manufacturers. The current market cap of Honeywell is

$147.94 billion, generating $34.93 billion in revenue. (Honeywell Stock Price & News, n.d.) As

a result of strong growth in advanced materials, commercial aerospace, and building products,

Honeywell stock is up 4.6%, according to new research. In addition, Honeywell aims to become
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Milestone Three: 3M Company Swot Analysis

carbon-neutral by 2035 with various ready-now solutions. (Honeywell Forecast Shows Strong

Growth for Business Aviation as Purchase Plans Increase Sharply, n.d.)

Similarly, to 3M, General Electric and Honeywell have developed market-focused

strategies. Providing innovative solutions to retailers and consumers worldwide is their

business's core. Because of its innovative and sleek design and discreet tracking ability, the

Deubré tracking device will, without a doubt, disrupt the market. Like any competitor,

Honeywell and General Electric will do what they can to respond to 3M's announcement of this

new product by offering similar products.

However, it is essential to point out that this device is unlike any other currently

available. Like most business-minded people, I will continuously seek ways to innovate the

device and expand into the footwear industry, persuading shoe companies to invest in the

product and creating more unique designs that capture the voice of the customer to generate

more sales. This tracking system is also capable of helping 3M to garner new customers since

this product can be marketed to the entire market, not just to a target audience that focuses on

healthcare. As far as trackers go, Honeywell offers one, but it only applies to vehicles; General

Electric does not have a product, whereas 3M has a tracker explicitly designed for keys designed

to track keys themselves.

Apple's Air Tag is one of many substitutes that have emerged in recent years. It is,

however, not easy to attach this product to anything, so it must be dropped inside the purse or

bag of the person it is tracking. In contrast, the Deubré Tracking Device design will provide ease

to caregivers caring for elderly parents; it also has the potential to expand into other fields.

Therefore, the product, in my opinion, can gain more market share than Apple's AirTag, whose

purpose is to help people locate their personal belongings. (Apple, 2022)

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Milestone Three: 3M Company Swot Analysis

References

3M Research and Development Expenses 2010-2022 | MMM. (n.d.). MacroTrends.

https://www.macrotrends.net/stocks/charts/MMM/3m/research-development-expenses

3M Announces Plans to Create Long Term Value Through Spin-Off of Health Care Business.

(2022, July 26). https://www.prnewswire.com/news-releases/3m-announces-plans-to-

create-long-term-value-through-spin-off-of-health-care-business-301593185.html

3M Marks 35 Years of Pollution Prevention Pays. (2010, April 22). 3M News Center.

https://news.3m.com/2010-04-22-3M-Marks-35-Years-of-Pollution-Prevention-Pays

3M Mission, Vision & Values. (n.d.). https://www.comparably.com/companies/3m/mission.

https://www.comparably.com/companies/3m/mission

3M Research and Development Expenses 2010-2022 | MMM. (n.d.). MacroTrends.

https://www.macrotrends.net/stocks/charts/MMM/3m/research-development-expenses

Fernández, L. (2022, April 13). 3M - statistics & facts. Statista.

https://www.statista.com/topics/4215/3m/

General Electric (GE) - Revenue. (n.d.).

https://companiesmarketcap.com/general-electric/revenue/

Honeywell Forecast Shows Strong Growth for Business Aviation as Purchase Plans Increase

Sharply. (n.d.). https://www.honeywell.com/us/en/press/2022/10/honeywell-forecast-

shows-strong-growth-for-business-aviation-as-purchase-plans-increase-sharply

Min, S. (2022, October 27). Stocks making the biggest moves premarket: Meta, Ford,

Honeywell, Caterpillar & more. CNBC. https://www.cnbc.com/2022/10/27/stocks-

making-the-biggest-moves-premarket-meta-ford-honeywell-caterpillar-more.html
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Milestone Three: 3M Company Swot Analysis

Sorbello, A. (2020, October 9). 3M Mission Statement, Vision Statement Analysis, and Core

Values. AstroGrowth. https://www.astrogrowth.com/blog/3m/

Apple. (2022, November 18). An update on AirTag and unwanted tracking. Apple Newsroom.

https://www.apple.com/newsroom/2022/02/an-update-on-airtag-and-unwanted-tracking/

Top 3m competitors and alternatives | Craft.co. (n.d.). Retrieved November 27, 2022, from
https://craft.co/3m/competitors

Morrow, M. (2022, June 20). What You Need to Know About the 3M Earplug Lawsuits. Bryant

Law. https://www.bryantpsc.com/3m-lawsuits/

Honeywell International Inc (HON) Stock Price & News. (n.d.). Google Finance.

https://www.google.com/finance/quote/HON:NASDAQ?sa=X&ucbcb=1