...Case study An analysis of 3M, the innovation company Introduction Any review of the literature on new product development and innovation management will uncover numerous references to 3M. The organisation is synonymous with innovation and has been described as ‘a smooth running innovation machine’ (Mitchell, 1989). Year after year 3M is celebrated in the Fortune 500 rankings as the ‘most respected company’ and the ‘most innovative company’. Management gurus from Peter Drucker to Tom Peters continually refer to the company as a shining example of an innovative company. This case study takes a look at the company behind some of the most famous brands in the marketplace, including Post-it® Notes. It examines the company’s heritage and shows how it has arrived at this enviable position. Furthermore, the case study attempts to clarify what it is that makes 3M stand out from other organisations. Background Originally known as the Minnesota Mining and Manufacturing Company, with its headquarters in St Paul, Minnesota, 3M was established in 1902 to mine abrasive minerals for the production of a single product, sandpaper. From these inauspicious beginnings, the company has grown organically, concentrating on the internal development of new products in a variety of different industries. The latest review of the company’s position reveals that it manufactures over 60,000 products, has operations in 61 countries, employs 75,000 people and has achieved an average year-on-year growth...
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...Innovation, ideas and solutions for a modern world 1 Introduction – A Century of Innovation 3M is a global diversified materials science company and a powerful, diverse and integrated enterprise. Although 3M identifies its core competency simply as “applying coatings to backings”, the company’s operations extend far beyond this. 3M, famous for its consumer brands such as Scotch® Tape and Post-it ® Notes, also creates thousands of industrial products used by manufacturers and service providers to create their own products. From its beginnings in 1902 as Minnesota Mining and Manufacturing, 3M has grown to achieve sales revenue of $US25.3 billion and an operating income of $US3.5 billion in 2008. The company has over 79,000 employees with approximately 13 percent employed directly as technical staff. As a truly global presence, 3M services almost 200 national markets, and operates subsidiary companies, such as 3M Australia, in more than 60 countries. Almost 64 percent of 3M’s entire sales revenue originates from international operations. With a vision “to be the most innovative enterprise and preferred supplier in the markets we serve”, 3M prides itself on its history of innovation – reinforced through its brand promise, “practical and ingenious solutions that help customers succeed”. Key values underpinning 3M’s continual success include its commitment to: • Satisfy our customers with superior quality and value • Provide investors with an attractive...
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...Innovation at 3M Corporation INNOVATION AND KNOWLEDGE ECONOMY - GROUP C 1 Contents 1 1 2 3 4 Background Source of Innovation Innovative Culture Lead User Research 5 Impact of Lead User Method 6 2 Click to add title in here Companies in Indonesia Background of “ Lead User Innovation” “ Traditional strategic planning does not leave enough room for innovation “ understand leading _edge customer needs to change the basis of Competition working closely with customer & understanding market need LEAD USER INNOVATION Definition of lead users Lead users refers to users who are ahead of the majority of the market on a major market trend, and who also have a high incentive to innovate. Producers seeking user innovations to manufacture try to source innovations from lead users - because these will be most profitable to manufacture 3 Milestone of 3M in Innovation 1902 The Minnesota Mining and Manufacturing Company (3M) founded The company has a long and famous history of innovation. They are known for such products as the Post-it which revolutionized the way individuals communicate, masking tape, and waterproof sandpaper. 1961 Medical Products Division, the first 3M division dedicated solely to health care, founded. The Health Care Unit was an important component of 3M’s business model, contributing a large percentage to the company’s revenue streams The unit had failed to introduce a successful product in almost a decade 3M is third in...
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...3M Marketing Audit Jeremiah Lindgren University of Mary 3M Marketing Audit 3M was founded in 1902 in Two Harbors, Minnesota by five businessmen, with diverse occupations, who wanted to mine a mineral deposit for grinding-wheel abrasives (3M, 2012). The founders did what many others did in that time and that was incorporate first and investigate later so soon after their start the company moved to Duluth, Minnesota to focus on sandpaper products because the mineral deposit was of little value (3M, 2012). 3M struggled for many years, then they got the quality production and supply chain down they attracted new investors. The company moved to St. Paul, Minnesota in 1910 and in 1916 they paid their first dividends of 6 cents a share (3M, 2012). In 2004, their sales topped $20 billion for the first time and currently they are in 25 different countries worldwide. When most people think of 3M they think of Post-It notes and Scotch tape but 3M actually has many other businesses besides office supplies (3M, 2012). They currently have a very high technology platform which gives them the ability to have a graphics business that people rely on every day along with an electronic and communication business that contribute reliable sources of electrical power to markets around the world (3M, 2012). They supply innovative and reliable products that are used by health care professionals. These products make them a global leader in medical and oral care products, and drug deliver and...
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...income taxes T but before deducting the bonus. So B = 0.20(100,000 - T). Because the bonus is a deductible expense, the amount of income tax T at a 40% rate is 40% of the income after deducting the bonus. So T = 0.40(100,000 - B). a) Use the accompanying graph to estimate the values of T and B that satisfy both equations. (35, 15) b) Solve the system algebraically to find the bonus and the amount of tax. B = .2(100,000-.4(100000 – B)) B = .2(100000 – 40000 + .4B) B = 20000 – 8000 + .08B .92B = 12000 B = $13042.48 T = .4(100000 – 13042.48) T = .4(86957.52) T = $34783 106. Free market. The equations S = 5000 + 200x and D = 9500 - 100x express the supply S and the demand D, respectively, for a popular compact disc brand in terms of its price x (in dollars). a) Graph the equations on the same coordinate system. S = 200x + 5000 S = 200(0) + 5000 S = 5000 S = 200(5) + 5000 S = 6000 D = -100x + 9500 D = -100(0) + 9500 D = 9500 D = -100(5) + 9500 D = -500 + 9500 D = 9000 b) What happens to...
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...1. How successful do you feel CNS has been in trying to put their product in each of the markets it has entered? How does this success relate to brand equity? Breathe Right nasal strips account for the majority of CNS’s sales. Furthermore, since their products are medical it has been FDA regulated. This shows that the company’s product was clinically proven prior to releasing it to the market, which makes the product even more effective. The nasal strips are the only clinically proven FDA treatment for snore relief due to nasal congestion. The nasal strips were initially marketed to sports teams, nasal sufferers and night-time snorers. The main reasons for CNS being successful are because of a demand for the product and because of brand equity. They knew that the majority of USA people suffer from these symptoms, i.e. running nose, snoring. Therefore, they launched this product because there was demand for the product which resulted in effective sales. It was successful in the market internationally as consumers began to seek drug-free natural courses to wellness. Consumers are now more health-conscious and have more needs in the self-care market and therefore CNS products meet these needs. Today, Breathe Right is a $70 million (annual sales) brand with line extensions and companion products. It's brought $200 million of incremental business to drug stores during its little more than four years in the market and it's brought some creative cross-promotions to cough/cold/allergy...
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...1. MS Word ------------------------------------------------- Keys, wallet, water — for many adults in Britain today the very idea of leaving home without a bottle of water to hand is simply unthinkable. A phenmenon that is understandable when you consider some of the claims made about it — and what happens if you don’t drink enough. ------------------------------------------------- ------------------------------------------------- Water, it’s said, clears your body of ‘toxins’ and helps you lose weight by tricking your stomach into thinking it is full. Not only that, it also keeps your skin hydrated and even holds back the effects of ageing. Whenever any actres or model is asked for her beauty tips she will inevitably recommend drinking plenty of water. ------------------------------------------------- ------------------------------------------------- To achive this state of fully hydrated and glowing health, we are told, you need eight glasses a day. If you don’t get enough, not only will you turn into an overweight, shrivelled old prune, but your brain will become ‘dehydrated’, affecting your ability to concentrate. ------------------------------------------------- Meanwhile, lack of water has been linked to everything from hunger pangs to increased risk of stroke. The ‘must drink water’ message has become so ingrained that even the NHS’s Healthy Living website advises that we all drink eight glases of fluid to remain in the best of health. ------------------------------------------------- ...
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...corporations globally to reconsider their identity. The intensity of these factors would vary from industry to industry, with each industry having a different lifecycle. The model brings out the paradox of shortened lifecycle of corporate identities which itself poses an extraordinary challenge to companies for effectively elongating and managing their identities. Changing ones corporate identity is not only an expensive affair but can also create dissonance in the minds of the stakeholders, if not managed and communicated properly. In order to succeed companies will have to exercise tremendous clarity of thought and understand their purpose of existence. Table of Contents 1. Corporate Identity : Concept and Purpose 2. Corporate v/s product brand identity 3. Corporate Identity Elements 4. Reasons for change : Strategic Inflexion Points 4.1. 4.2. 4.3. 4.4. 4.5. 4.6. 4.7. 4.8. 4.9. 4.10. Change in Technology (Case Study : Intel; Kodak) Change in...
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...Case study notes This case study explores a very unique organisation: W.L. Gore Associates. It explores the role of organisational management and culture within a very innovative firm, which is responsible for some very well-known products such as the famous Gore-Tex fabric, and yet few people know much about this remarkable organisation. It is operated in a way similar to that of a cooperative such as The John Lewis Partnership in the UK, where the employees are also owners. In addition, the organisation seeks to minimise management with the emphasis on action and creativity. Case study questions 1. Explain what happened to the Gore-Tex brand after the patent expired. What activity can firms use to try to maintain any advantage developed during the patent protection phase? Competitor products emerged (generic versions if you like). To compete, it was necessary to develop the brand. This is something that has not happened. What else could it do? 2. List some of the wide range of products that the Gore-Tex fabric has been applied? All sorts of clothing, shoes, coats, etc. Also, windsurf sales and kite surf sales. What else could it be applied to? 3. It seems that Gore Associates is heavily orientated towards technology. What are some of the dangers of being too heavily focused on technology? Myopic views such as not listening to customer views, too focused on technology. Missing opportunities that may exist, which involve minor changes. Also, marketing mix considerations need to...
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...Case study notes This case has been updated to include the Apple iPad. Principally this is case explores the issue of licensing and how successful firms can become unsuccessful. It is not a case about Apple and why it has become successful. This case study explores the rise of the Apple Corporation. The Apple iPod is one of the most successful new product launches in recent years, transforming the way the public listens to music, with huge ramifications for major record labels. More than 50 million MP3 players are expected to be sold in 2005; over a third more than last year. Mobile phones have long been regarded as the most credible challengers to MP3 players and iPods. The launch of digital download services via mobile phones illustrates the dramatic speed of convergence between the telecom and media industries, which many observers expect to usher in a new era of growth for mobile phones. Users are willing to pay more for additional services and many analysts predict that mobile phone handsets will eventually emerge as the dominant technology of the age, combining personal organisers, digital music players and games consoles in a single device. Indeed, Microsoft founder Bill Gates has predicted that mobile phones will supersede the iPod as the favoured way of listening to digital music. The launch of the Apple ipad in 2010 makes this case even more topical. This should form the basis of supplementary questions at the end of the case: How will the iPhone succeed? What about...
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...The total cost of the plan is estimated to be $81,000 (see exhibit 1) which is in addition to the projected Super Bond marketing plan for FY79. The target audiences for the plan are small to midsized companies that are non users and companies that are CA users that will benefit from using the BAM. The objectives of the plan will be to increase brand awareness, educate non-current users of the advantages of CA adhesives (Super Bond) as well as the advantages of dispensing equipment, and to increase awareness of the BAM among current users. The plan will utilize direct mail that will be reinforced by future Super Bonder advertising. The BAM should not be considered as a stand alone product but as a complementary product to Super Bond adhesives. The focus of the plan is to use the BAM as a method of introducing new users to instant adhesives and to react to the expressed interest of current CA users in improved dispensing techniques. Brand loyalty will be strengthened once the end user begins to use the BAM in conjunction with Super Bond adhesives. Also, it is recommended to continue the use of the Loctite logo on the BAM to strengthen brand identity. In order to avoid competition with the Systems Division’s line of applicators, the plan will focus on small to midsized companies within SICs 20 through 39 that use less than five (5) pounds of adhesive per year. The assumption is that a company using five (5) pounds or more of adhesive per year are already using or have been introduced...
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...Cadbury Dairy Milk Chocolate Cadbury Dairy Milk chocolate is one of the major success stories of the Cadbury business and one of the world's most famous chocolate brands. The new milk chocolate was introduced to the British market in 1905 and, with its unique flavour and texture, quickly became the market leader. Milk chocolate was first made by Cadbury in 1897 by blending milk powder with the basic chocolate ingredients of cocoa butter, cocoa mass and sugar. . Launched in 1905, Cadbury proudly boasted that its new milk chocolate was not only "as good as," but better than the European milk chocolate. With its now-famous glass and a half of full-cream milk in every 200gms, it contained far more milk than any previously known chocolate. The special flavours produced when fresh milk, cocoa mass and sugar are cooked together in the first stages of the chocolate crumb making process give Cadbury Dairy Milk its unique taste. Cadbury Dairy Milk blocks comes in a range of sizes suitable for all ages and occasions - from a quick snack, a self-indulgent treat, something to share with family or friends or a gift. Cadbury Dairy Milk is sold with a similar design worldwide - the centerpiece of all packaging is the iconic "glass and a half " image showing the famous glass and a half of pure full cream milk flowing into a delicious chunk of Cadbury Dairy Milk chocolate. Consumer Needs it Fills Basically Cadbury chocolates are tasty, satisfactorily and sometimes healthy. One...
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...Introduction The current global and virtual business environment shapes the business strategy for the aim of competing by knowledge and expertise to win the market share in the long run. Apple Inc. is one of the major leading hardware manufacturers, originates from the United States and is popular among the world. Its long-term direction could be strengthening the research, design, development and manufacturing phases. The success of this company relies its competitive strategy, which integrates its core resources, company structure and business process and stimulates targeted customers effectively as well as attracts more customers. In the meanwhile, the success of Apple Inc. is due to the support from strategic marketing. This report for Apple Inc. will analyze strategically about Apple in terms of its business description first with company profile, financial description and future direction in it. Furthermore, the sustainable business strategies that Apple adopts will be described in detail and the effectiveness of them will also be proposed one by one. The author also makes use of one of the classic tools, SWOT analysis, to give all-around insight of its competiveness strategies in terms of advantages and disadvantages. Some suggestions will appear in the end of this report as well. Business Description Company Profile The business description comes from its financial report: “The Company designs, manufactures, and markets mobile communication and media...
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...STRATEGIC MANAGEMENT MGMT E -5000 LVMH Case Analysis By Kavya October 6, 2008 External Analysis for LVMH. Environmental analysis (PESTEL): See Exhibit 1 for comparison of PEST factors: Key findings on the analysis were: * The luxury goods industry was very sensitive to the fluctuation of the economy and any economic drift could have a great influence on its sales. * If the economy was depressed its sales growth went down sharply (e.g. SARS attack 2003) and so did the consumer spending for the luxury goods. * Socio cultural challenge for LVMH was to cater to the needs of the different target customers. (Middle class customers to elite group customers). * Although the luxury market seemed to be dull between years 2001-2003 there was a turnaround and the world economy was recovering enormously and LVMH net sales was still better than the average industry performance. * Positive economic climate (periods of relative prosperity with low interest rates and increased consumer spending), tax cut rates along with the optimistic attitude of the firm all favored the growth of LVMH. * There were enormous growth opportunities in new regions such as China, India and Russia. Inspite of the economic downturn, LVMH’s growth was positive and maintained its leadership position in the luxury industry. As the affluent middle class primarily drives the rapid growth of the luxury goods industry, LVMH needs to monitor them more closely and cater to their needs....
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...2. Competitor Analysis 3. Consumer Analysis 3.1 Consumer Trend 3.2 Consumer Needs And Wants 3.3 Consumer Behaviour 4. Post-it Analysis 4.1 Target Segment 4.2 Distribution Characteristics 4.3 Business Performance 4.4 Business Strategy – 5Ps 4.5 SWOT Analysis 5. Proposed Marketing Plan 5.1 Target Segment 5.2 Positioning 5.3 Strategy 5.4 Conclusion 1. Market Analysis The repositionable notes market is made up of paper or tabs with adhesive, which allows the product to be stuck on surfaces and moved, without leaving residue. They are also known as ‘sticky notes’ and the idea was first conceived by 3M innovators. Post-it, the original inventor of ‘sticky notes’ have seen other competitors entering the market, yet having little success in toppling Post-it as the market leader. This is especially so in Singapore, where most of the brands shy away from competing head-on with Post-it, by differentiating their products. 1.1 Market Environment 1.1.1 Technology The ease of accessing wireless networks via Wireless@SG, since its introduction in 2006, has led to a surge in consumers switching to 3G phones. The implications of this on the repositionable notes market is that gadgets like phones are increasingly being used as a substitute in place of sticky notes, in reminding people of certain events or things. Instead of physically placing a post-it on the desk, people choose to set reminders on their phones, with alarms. People also choose to send short messages...
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