Due to financial stability, 3M is able to participate in the market and carry out with their innovation process, market expansion, and brand building. As the company operates in 65 countries, they have the possibility to generate more revenue and growth in different markets while establishing strong distribution channels and strong relationships with partners  which allows them to create a good supply chain and a low cost structure.

 

The fact that 3M is operating in different markets and countries, can be seen as strengths and as weakness.With their widespread of their operations, they have to compete with more competitors and have to consider different regulations in the various markets. Since innovation and new product development is one of the key factors for the company, continual investments in R&D is required, There can also be a lack of focus in what they are doing. The firm also needs expertise in different markets, industries, technologies etc. which gives potential competitors the opportunity to have "more developed" in a particular area.

 

By developing new products, new markets can be entered. Expansions of product lines target new consumers and new market segments. Health care, electronics and security are in growth in many countries and those are sectors the firm is strongly involved in. The possibility of M&A gives 3M the opportunity to enter new markets and gain know-how very quickly although it not 3M original approach.

 

There is always a potential threat about environmental concerns and increasing costs for production. In addition, different laws and regulation in different markets and countries needs to be considered (as the practice differ from places to places). Fast changing environment also can be a big threat for 3M where the market is flooded by competitions (especially when they may have an advantage in specialising in just one product line or market segment).