3M Canada: Industrial Business Division

Senior management at 3M Canada's Industrial Business Division (IBD), which manufactures abrasive and adhesive products, faces a dilemma. In the light of a 2006 directive from corporate headquarters, which calls for top line growth, IBD has a goal of essentially tripling its annual rate of sales gain from its current level of three to four per cent to 10 per cent within two years. In IBD's markets, 3M as a product-driven company with strong research and development focus, has historically concentrated on original equipment manufacturers and specialty distributors, but a new channel to market has emerged. Several national distributors of items used in general repair and maintenance are growing at a rapid pace. If 3M Canada wants to participate in the growth, it must seriously reconsider how it goes to market, particularly in sales and logistics. Dealing with this situation demands analysis of the requirements of the new channel, and an assessment of fit with IBD's capabilities and strengths. Significant changes will be necessary for IBD if it is to gain and sustain business in the emergent segment.