Question

3M sells more than 50,000 products in nearly 200 countries across dozens of industries, including office products, construction, telecommunications, electronics, healthcare, aerospace, and automotive. Among its products are some of the world’s most recognizable consumer brands, such as Scotch tape, Nexcare first aid products, Filtrete home filtration products, and Post-it Notes. But 3M’s portfolio is also packed with hundreds of brands that most people have never heard of—such as Pruven waste bags for picking up dog poop. This case examines the systems and culture of a company that is on the cutting edge of innovation, releases new products every year, and maintains a strong profit margin without fail.

1. Based on concepts discussed in this chapter, describe the factors that have contributed to 3M’s new product success.

2. Is 3M’s product development process customer centered? Why or why not?

3. Considering the product life cycle, what challenges does 3M face in managing its product portfolio?

4. Are there limits to how broad 3M’s product portfolio can grow? Explain.

Answer 1

*About the company:

The 3M Company is an American multinational conglomerate corporation operating in the fields of industry, worker safety, US health care, and consumer goods. The company produces over 60,000 products under several brands, including adhesives, abrasives, laminates, passive fire protection, personal protective equipment, window films, paint protection films, dental and orthodontic products, electrical and electronic connecting and insulating materials, medical products, car-care products, electronic circuits, healthcare software and optical films. It is based in Maplewood, a suburb of Saint Paul, Minnesota.

(Point 1)

3M company has a very broad range of products starting from stationery to electronic products and much more, it is having a very wide and a diverse portfolio. During the course of time 3M company has established itself as a customer centric company with quality products. Factors contributed towards new product’s success are as follows:

a. Customer centric approach

b. Quality offered with the products

c. Good support services offered to the company

d. Quantity in association with the quality for all the products

e. List of variety of products so that it fulfils all the needs and requirements on the part of final consumer.

f. Integration of new technologies in order to benefit the end user of the product.

g. Use of up to date technologies.

(Point 2)

3M company uses the line “customers’ challenges are our challenges”. Working on 46 technology platforms and collaborative culture, 3M invent products that help customers solve the issues they are facing in many areas, including health, safety, and energy. And the same is not stopping here. 3M have established a new set of aggressive goals for 2025, ranging from investing in sustainable materials and energy efficiency, to community-wide approaches to water management and helping our customers reduce their greenhouse gas emissions. 3M have also set 2025 goals around building a diverse workforce and educating individuals on worker and patient safety in healthcare and industrial settings.

Also the products which are being offered by 3M are having intention to provide the consumer/to the end user of that very product the utmost satisfaction for which he/she desired and so far they have succeeded to a great extent by doing so. 3M company is having such a diverse portfolio in order to cater the needs of the individuals as per their requirements, whether it is related to any industry.

(Point 3)

Considering the Product Life cycle of 3M's, the major challenges faced by the company is as follows:

a. Quality offered with all the products offered in the diversified company portfolio.

b. Resources which are used in order to create any product. (e.g. Raw Material)

c. Proper safety with the associated products

d. Quantity of the served products along with the cost associated

e. Cutomer footfall for the products offered

f. Rival firms which are offering the same category of products.

(Point 4)

No there are no liimits to diversify the product folio, because we are living in such an era where the technological changes are tend to happen in every minute or rather I would say every second. Every minute technological changes are being ammended, new technologies are also implemented in the market place, which have an impact on product development also. So, to cop-up with this new technology there is no limit to diversify. In order to explain this statement, please see the below points:

a. Technological upgradation

b. Modern changing production types

c. Customer pshchology associated with a particular product

d. Cost centric approoach in order to maixmise end user's benefits

e. Use of modern tools for producing any product in the market place where their are a large number of buyers and sellers.

f. Idea generation of new products, because of the increasing demand.

g. New product ideas and that too minimal cost association.