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3M and Diversification

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This powerpoint Presentation will help you to understand how and upto which diversity a company can diversify itself into different products & services and how it can be successful. We, the "3 smiles" group of ITM batch 2008-10 have prepared this presentation to understand diversification with help of example of 3M ltd. Have fun!(But you need to download it!! Because its a ppt and you cant see it properly without F5!)-ANKIT RUPDA

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Page 1: 3M and Diversification
Page 2: 3M and Diversification

SBUs of 3M …

e

Page 3: 3M and Diversification

Industrial Markets

Customers/markets

Metal fabrication, oil and gas, woodworking, Display and graphics

Products/Brands

Scotch tape & adhesive,3MProtective tape & coatingVikuiti Digital display film

Channels Business to Business sales representative network and E-Business Networking

Inputs Chemical mixing, Polyester, Polypropylene ,Synthetic Rubber, Acrylic

Processes Own manufacturing unit and adhesive procurement from other business division

Success factors Innovation, huge variety good distribution network

Page 4: 3M and Diversification

Customers/markets

Products/Brands

Channels

Inputs

Processes

Success factors

Automotive and Specialty Materials Markets

Auto dealers, car owners, Aerospace industry

Scotch gard Paint Protection films, 3mHigh bond tape, 3M denting utilities and many other products

Business to Business sales representative network and E-Business Networking

Films and chemical components, adhesives, high-quality abrasives,

Mass production and raw material procurement from other business division

Unique product features, good quality

Page 5: 3M and Diversification

Customers/markets

Products/Brands

Channels

Inputs

Processes

Success factors

Traffic and Safety Markets

Government Transport Dpt., Auto Accessories Dealers

Scotchgard films, 3M reflectors

Business to Business sales representative network and E-Business Networking

Electronic components, adhesive tapes

Fully outsourced from its subsidiary 3M China and reflective material from other business division

Unique product and first of this kind in the history of traffic signal design. -Model 131

Page 6: 3M and Diversification

Customers/markets

Products/Brands

Channels

Inputs

Processes

Success factors

Consumer and Office, Construction Markets

General consumer, Construction Business

Scotch®, Post-it®, Scotch-Brite®, and Scotchgard™, Scotch Print™ Glass Decoration.3M™ Novec™ 1230 Fire Protection Fluid ,pastes etc

Direct sales force, General Retailers and E-Business Networking

Paper tapes adhesive cotton natural fibers

Own manufacturing units, adhesives from other business division

Huge variety of products for every needs and segments, innovation

Page 7: 3M and Diversification

Customers/markets

Products/Brands

Channels

Inputs

Processes

Success factors

Health and dental Care Markets

Hospitals, Doctors andDental Labs

3M™ Littmann Stethoscopes ,Lava dental products,3M ESPE dental care & surgery products

Business to Business sales representative network and E-Business Networking, Direct sales force,

Sound analysis software, Soft sealing tips with metal bush, chromium etc

Outsourcing from different parts manufacturer (Mainly from China Japan and South Korea), assembling in the assembly centre

Innovative health care solution based on 3M’s diversified technology, huge variety more than 30 products for 4 types of health care segments,

Page 8: 3M and Diversification

LEVELS OF DIVERSIFICATION

PRODUCT

PA

YER

Level one

Diversification from within…

Level two

Level two Level three

Same Product New Payer…

Same PayerNew Product…

New ProductNew Payer…

Same New

Sam

eN

ew

Page 9: 3M and Diversification