3m Case: Business Strategies over Its History
1. Describe the organizational structures and devices 3M uses to encourage entrepreneurial activity. Why do they work?
3M heavily based its business on innovation and while doing this it always supported its employees in terms of being innovative. 3M also always followed the alternative ways in order to increase their profit and market share, and they found that one of the best ways is through organizational innovation. Therefore, in order to improve their business 3M developed 6 different strategies over its history. These strategies helped 3M to promote entrepreneurship and increase customer satisfaction within the market.
First strategy of 3M’s was getting close to customers and understanding their needs.3M started their businesses by selling sandpaper and the only way they could generate sales was by getting close to the customers and demonstrating their products for them. This helped them to understand customer's needs better based on the feedbacks they get from demonstrating their products to this selected group of customers.
Afterwards, as a second strategy they tried to seek out niche markets no matter how small they are. Following the success of the first strategy, 3M found that if they offered customers what they wanted, these customers will be loyal to their company. Thus they developed the second strategy to seek niche markets no matter how small, as this will allow them for charge premium prices for their products.
Then they included product diversification as the third strategy. By being close to the customers, 3M identified problems that they can solve for their customers through technical expertise. This was efficient as it ensure that they continued to diversify their product offerings by developing new products to solve new or unattended customer needs. Once 3M found a new product to offer in their niche market they would move on to develop related products and thus occupy leadership positions in these markets.
As the fourth strategy, they
3M heavily based its business on innovation and while doing this it always supported its employees in terms of being innovative. 3M also always followed the alternative ways in order to increase their profit and market share, and they found that one of the best ways is through organizational innovation. Therefore, in order to improve their business 3M developed 6 different strategies over its history. These strategies helped 3M to promote entrepreneurship and increase customer satisfaction within the market.
First strategy of 3M’s was getting close to customers and understanding their needs.3M started their businesses by selling sandpaper and the only way they could generate sales was by getting close to the customers and demonstrating their products for them. This helped them to understand customer's needs better based on the feedbacks they get from demonstrating their products to this selected group of customers.
Afterwards, as a second strategy they tried to seek out niche markets no matter how small they are. Following the success of the first strategy, 3M found that if they offered customers what they wanted, these customers will be loyal to their company. Thus they developed the second strategy to seek niche markets no matter how small, as this will allow them for charge premium prices for their products.
Then they included product diversification as the third strategy. By being close to the customers, 3M identified problems that they can solve for their customers through technical expertise. This was efficient as it ensure that they continued to diversify their product offerings by developing new products to solve new or unattended customer needs. Once 3M found a new product to offer in their niche market they would move on to develop related products and thus occupy leadership positions in these markets.
As the fourth strategy, they