Northeastern University Week 3 Assignment 1 Victoria Rodriguez

INTB 6217 Sec 01 3M Taiwan: Product Innovation in the Subsidiary March 4, 2021

Tao-Chih Chung and the local product team have found an innovative application for an
existing product in 3M Taiwan. Chung, as the departmental head of the healthcare business division,
is faced with the dilemma of whether or not to proceed with the Acne Dressing project, a new
product that would be the first application of the hydrocolloid dressing technology. Before making
his final decision on how to proceed, the pros and cons must be weighed.
While the fact that there is no product like the Acne Dressing in Taiwanese market means
there is a huge potential for economic gains if proven effective, the lack of quantitative will
seriously cripple analysis of sales and production volume forecasting. Exacerbating this lack of
forecasting data is the potentially high cost of production affecting the promotion of the dressing as
an over-the-counter option price point. In addition, the local market is already using cheaper
alternatives and DIY options to deal with acne in its use such as 3M’s surgical tape. Yet, nurses have
already been cutting up the hospital and clinical sized product to use for smaller, localized blisters.
It won’t be that much of a stretch to “educate” the consumer and have them embrace the product.
Seeing as users of the surgical dressing have already been finding additional, customized
uses of the hydrocolloidal dressing, 3M can dominate the Taiwanese market and can leverage 3M’s
resources to outcompete any local or rival entries. Another benefit of proceeding with the Acne
Dressing project is that research and manufacturing facilities are co-located, as additional research
knowledge on the effectiveness of product will be guided by local consumer attitudes [ CITATION
Jos04 \l 1033 ] [ CITATION Kee12 \l 1033 ]. Further benefits come from the potential for
productive friction, which can help in creating effective prototypes by gathering relevant, diverse,
and specialized knowledge [ CITATION Joh05 \l 1033 ]. Chung needs to further take advantage of
the exchange of simple and complex knowledge [ CITATION Jos04 \l 1033 ] and expertise by
prospecting [ CITATION Jos04 \l 1033 ] from headquarters resources on how to best develop,
market, and distribute the product.
When a company has the potential to launch a new and innovative product in an emerging
market, it is imperative to weigh the risks and benefits of pursuing such a path. The challenges
ahead can be moderated by deploying various internal resources, fostering external options, and
gathering varied expertise.

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 Northeastern University Week 3 Assignment 1 Victoria Rodriguez
INTB 6217 Sec 01 3M Taiwan: Product Innovation in the Subsidiary March 4, 2021

Works Cited

[1] Y. D. a. P. W. José Santos, "Is Your Innovation Process Global," MIT Sloan Management
Review, Boston, 2004.
[2] K. W. a. Y. L. Doz, "10 Rules for Managing Global Innovation," Harvard Business Review,
Boston, 2012.
[3] J. H. I. a. J. S. Brown, "Productive Friction," Harvard Business Review, Boston, 2005.

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