3m Corporation Essay

966 Words Mar 20th, 2013 4 Pages
CASE #4: 3M Canada: Industrial Business Division

PROBLEM RECOGNITION

* The target is to increase growth rate from 3-5% to 12-15% in 18 months * OEM market is mature with limited prospects of expansion * Ultimately shifting overall focus from OEM market to MRO market * High unfamiliarity and low exposure to the MRO market * IBD’s share of distributor sales was 2% of distributors’ revenue * Transitioning focus from Special and Niche accounts to Large National accounts * OEM is a volatile customer group influenced by the economy and inflation

SITUATIONAL ANALYSIS

Strengths: * Highly diverse product line and product development serving the industrial markets (seven divisions) * Continuous net
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However, in order for 3M to be successful in the MRO business segment, they need to implement all three of the alternatives at the same time. Yes, doing a combined alternative implementation plan will be very difficult. However, it is a must in order for them to gain the wanted positioning in the MRO market. Therefore, we choose to, at the same time, implement: * Supply Chain improvement * Changing the sales force * Increasing customer perceived value
(In the respected order)

IMPLEMENTATION

* Logistics Issues * Whatever the number of market channels a company uses, it must integrate them to achieve an efficient supply system * A high percentage of 3Ms business comes from their channel partners * Therefore, 3M needs to synthesize or systemize partner relationship management (PRM) through adopting PRM software * The software can improve the information flow and reduce the cost of communication,

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