3M SWOT Analysis

SWOT is an acronym for the internal Strengths and Weaknesses of a firm and the environmental Opportunities and Threats facing that firm. SWOT analysis is a widely used technique through which managers create a quick overview of a companys strategic situation. The technique is based on the assumption that an effective strategy derives from a sound fit between a firms internal resources (strengths and weaknesses) and its external situation (opportunities and threats). A good fit maximizes a firms strengths and opportunities and minimizes its weaknesses and threats. Accurately applied, this simple assumption has powerful implications for the design of a successful strategy.

3M
3M Company (3M) is a diversified technology company, which operates in electronics and telecommunications; industrial; consumer and office; healthcare; safety; and other markets. Over the years, the company has established strong research and development (R&D) capabilities, which enables it to innovate and launch new products in the market. It also provides the company with a competitive advantage. However, the rising energy costs would have an adverse affect on the prices of company's raw materials, which could in turn affect the company's operating margins.

Page 1 of 2

3M SWOT Analysis
Strengths, Weaknesses, Opportunities and Threats (SWOT)
Location of Factor Favorable TYPE OF FACTOR Unfavorable

Internal

Strengths Strong research and development capability Diversified business and geographic presence Strong growth in revenues and profits

Weaknesses Weak inventory turnover ratio Weak performance in key segment

External

Opportunities Recent acquisitions Global expansion Rising healthcare spending in the US

Threats Rising energy prices Currency risks Environment regulations

Page 2 of 2