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3M SWOT Analysis 




Being one of the popular companies in their industry, the present company has various strengths. They have been enabling them in a thriving marketplace. Firstly, they have reliable suppliers. They have a strong base of different dependable suppliers of raw materials. Next, they have a strong brand portfolio. That brand portfolio has been highly helpful as the company needs to extend their new categories of products. Further, they have a greater level of customer satisfaction. Here, 3M has been comprising of a dedicated CRM department. This is to gain more level for their customer satisfaction and good quality of brand among potential customers. There is a highly skilled workforce. This is with learning programs and successful training. Besides, they have high performance present in the new markets. Again, they have a strong community of strong dealers. They have been developing a culture that is present among dealers and distributors. Here, dealers have been promoting products of 3M. They have been affecting the training sales team. This is for explaining to a customer that customers can retrieve the utmost benefits from their products.

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These are the area where the company could be improving upon. Their inventory of days has been greater compared to competitors. To make the 3M raise more capital for investing that channel. It has been affecting their long term development. Their organisational structure has been compatible with a current business model and limiting their expansion and this is in nearby segments of the product. Moreover, their financial plan is never performed efficiently and properly. The present ratio of asset and asset of liquid of ratios has been suggesting that 3M has been applying cash than that is done at present. Further, it is seen that their investment in R&D is less than quick developing players in that sector. Though the company has been spending more than the industry average on R&D., This is to compete with popular players in the sectors as per innovation. They have come around a mature, strong approach for bringing out products as per various tested elements in the marketplace. There is a large attrition rate within the workforce. As compared with other sectors, the company has a greater rate of attrition and need to be spending more as compared to competitors for their employee’s training and development. Further, there is limited success that is outside the core business. Though 3M is a leading company within their sector, they have facing issues to other product areas with current culture. is a good website to provide case study help.

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There is a stable free flow of cash providing scopes in investing to their nearby product area. Having more cash that is there in bank 3M has been investing in the latest innovations and new segments of products. It has disclosed the path of scopes for 3M and other categories of products. This is to decrease transportation costs due to lesser prices of shipping that declines the product cost of 3M. Thus they have to deliver the scopes to 3M for boosting profitability and passing advantages to customers in achieving market share. Moreover, they have a lesser rate of inflation. It is due to more amount of stability with a lesser rate of interest to 3M’s customers. Again, financial upstick and a rise in the amount of customer spending, as the recession has gone and a slower rate of growth in the sectors, scopes are there for 3M in capturing new customers and enhance their share in the market. Further, there are new trends in consumer behaviour. This has been opening a new market meant for 3M. Thus, they have been providing more scopes for 3M in developing new streams of revenues and diversifying categories of new products. Moreover, they have been opening new markets since there is agreement from government. Here, the adoption of standards of new technology and free trade of governments has delivered 3M with the scopes to make entry into a new market. Their core competencies have been lying on success in the same kind of another product area. Here, an example of healthcare research of GE can be considered to develop a more effective machine for oil drilling. Their development in the market has resulted in dilution of advantage of competitors and enables 3M in a rise in their competitiveness as compared to other market competitors.




There is a rise in raw material to pose threats to profitability of 3M. Further, there are new technologies that are created from the end of market disruptors or competitors that are high threats to their industry from where 3M belong in mid to long periods. There are also shortages of various skilled working forces in specific internal marketplace. It has represented risks to the steady development of profits for 3M at the markets. There are demands of largely profitable products that are seasonal and unlikely occurrences are happing while peak season goes on. They have been affecting profitability of 3M till medium terms. Next, there is a rise in pay level with movements like fifteen pounds every hour and a rise in costs in China due to serious pressure on 3M’s profitability. Further, no such regular level of supply for innovative products is seen. In past years, the business has been creating various products. However, they are often reacting to the developing of other players. Apart from that, there is a supply of new products has never been regular. In this way, they resulted in low and high swings in sales for long time. Further, there is a rise in the strengths of local distributors, presenting threats on few markets as the competition has been paying greater margins within a local level of distribution. Again, there is a rise in trends of isolationism in economy of Australia, resulting in the same type of reaction from various governments. In this way, it has been affecting global sales negatively.

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3M PESTEL Analysis


Political Factors


The political factors have been exerting effective influence on profitability and sustainability in the long term for 3M Company. Their existence on a global stage has enhanced their sensitivity towards transformations in political surroundings in various nations. Under political context, their mode of success under dynamic global business scenario has been diversifying systematic threats.


Economic Factors


It is vital for 3M to evaluate various economic factors like conditions of labor market, saving rates and inflation, rate of interest and foreign exchange, savings rates and inflations. This is because they help to find out a complete financial environment of the nation.

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Social Factors


Administrative culture develops strong effect from the social norms, standards and inclinations. Consideration of the demographic tendencies, power assemblies, customers’ spending shapes and communal beliefs can benefit 3M. The organization has required to plan effective promotion communications and accomplish company objects concluded by this informed PESTEL examination.


Technological Factors


It cannot be denied that here, their technology has been considered to be the fourth and one of the vital factors that are there for 3M’s PESTLE analysis. In this situation, there is quick technological diffusion and advancement around the world and there is a rise in significance to analyse various essential technological factors as the decision-making methods of strategy are there.

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Environmental Factors


The rising environmental contamination joined with technological progression, has obliged business organizations to accept advanced reprocessing along with different waste management put into practice. In particular nations, reprocessing has practically developed into an occupational norm. Furthermore, implementing effective waste management performs in organizational units. Besides, these are placed in or nearby municipal zones are exceedingly critical for 3M Company. Many nations have employed firm rules to safeguard their metropolitan parts through operative waste management. Certain countries are seen to be offering subsidies. This is for inspiring investment in renewable types of machinery. Again, 3M should also upsurge stakeholder consummation and enlarge the client base due to improved brand appearance.


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  1. What Are 3M's Weaknesses?

The company is average in product manufacturing. They are not good at demand forecasting. They always end up in the high storage of inventory. They do their research before designing their products. Still, they cannot make as innovative as their competitors are making. They do not spend much on the development of their employees. They need to provide them with the proper training.

  1. What Are 3M Company's Internal Strategic Factors?

In the case of product development and innovation, the company needs to work more. To make their products better, they always hire employees and workers. They always follow a science-based approach because they think that they will be able to solve the issues in that way.

  1. What Are 3M's Strengths?

The company has over 80 000 employees globally. They operate in 65 countries. They are known globally. Most of their sales happen outside the United States. It can be said that people like their products, even outside the US. With the help of distributors, they can reach their products in 200 countries.

  1. How to make a good SWOT and PESTLE for 3M?

To make a good SWOT and PESTLE analysis, you will need several data and information about the company. You may need to watch several podcasts to understand their strong and weak points. You also have to know about the strategies they use in the market. Finally, you will know the marketing strategies they use to attract customers to the business.

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