1. Analyze the resource base at 3M: what are some of the most important tangible
ID: 387270 • Letter: 1
Question
1. Analyze the resource base at 3M: what are some of the most important tangible and intangibleresources in the company? Do any of these resources meet the criteria for being valuable, rare, inimitable, AND nonsubstitutable? Explain why or why not, being sure to cover each aspect for the VRIN framework.
2. Clearly, 3M has had some success in recent years. How do the above-mentioned resources combine to create a core or distinctive competence at 3M?
(This is NOT the 3 M's. It is referring to the actual company "3M" that makes office products, electronics, health care etc)
Explanation / Answer
1. 3M as a company believes in innovation and creating synergies between different allied industries. It believes in connecting different businesses with each other and not keeping it isolated from one another. Some of their key resources (both tangible and intangible) can be placed into the VRIN framework as follows:
Valuable
Technology exchange across business in order to boost innovation. Therefore, a technology platform can reap profits in multiple industries. Additionally, a market can gain substantially from the expertise of varying platforms of technology.
Rare
The financial allocations required to create that rareness is most often difficult to secure. Hence, larger conglomerated like 3M have the potential to make such monetary commitments.
Imitability
3M has experience of over 100 years to create this complex system of technology exchange across markets. The coordination and knowledge transfer was further enhanced and adapted according to the market situations and the needs of the company. This history of cross dependency makes it inimitable.
Non-substitutable
The organizational culture set in and built over these years to support it activities thoroughly, making it very difficult to substitute. However, some scope of improvements does lie in the efficiency of the logistic structure of 3M.
2. Reviewing the framework, one can clearly state that 3M has created a competitive advantage. As can be seen from their resources, 3M draws its sustainable competitive advantage through their capability to combine scientific research, engineering and finally the manufacturing competency. In order to serve niche markets, it makes use of these technology platforms, in which it has gained tremendous knowledge. This deep understanding helps it to develop new products for different markets, a strong linkage between the technology platform and the markets being served.
The technology and the culture established has helped 3M to create a unique model of technology and manufacturing synergy, a kind of a lattice, that shares technology and knowledge across the various industries it caters to.
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