Analysis Of 3M

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Introduction to 3M and the resource based view. Aims and Objectives. Within this report I will be taking a resource based view of 3M. Firstly, I will aim to explain and evaluate the importance of capabilities and how they contribute to gaining a competitive advantage for 3M. I will then go onto evaluate 3M’s strategic capabilities using different tools and frameworks, leading onto a conclusion stating how 3M use resource based view to gain competitive advantage, considering implications of the resource based view and is possible to guarantee success for 3M. Introduction. 3M are fundamentally a science-based company (3M, 2014). Who produce a range of imaginative products, being a market leader in scores of markets from healthcare and highway safety to office products and abrasives and adhesives. 3M’s success begins with the ability to apply their technologies – often in combination – to an endless array of real world customer needs (3M, 2014). At yearend (2012) 3M had global sales of $30 billion, operating in more than 70 countries with customers in almost 200 countries employing 88,000 employees globally (3M, 2014). 3M’s is currently trading at 134.73p per share (London stock exchange, 2014). Capabilities, strategy, competitive advantage and resource based view. In relation to this report a businesses capabilities will be referring to the organisations, in this case 3M, ability to use their resources, expertise and capacity to perform core functions (Elgar, 2005, pp. 17-21). (Woods, 2012, pp. 2-5) State that strategy is the long-term direction of an organisation, furthermore strategic capability is the capabilities that contribute to long term survival or competitive advantage (Woods, 2012, pp. 50-52). Competitive advantage is... ... middle of paper ... ... RBV on its own to continue this competitive advantage for 3M; or any organization, is not enough. The RBV, as summarized throughout this report is causally ambiguous and retrospective. When using the RBV it is very difficult to decipher exactly what has created competitive advantage and if a resource has had any impact on performance at all. The RBV seems to use the past, creating a distorted view of how competitive advantage was created. (K, Evans 2014) says that external marketing communication allows companies to stay in touch with customers and provides a channel for customer input while also indentifying and exploiting sales opportunities. The writer would recommend that 3M either improve their marketing or hire an outside marketing team to aid them, the company is currently performing very well but the writer feels there is room for improvement in this area.

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