Leveraging core capabilities…

One of the frequent items that you may come across whenever you read about a successful company is about their ability to leverage their core capabilities…Though it sounds bit abstract, trying to understand the same with good examples throw some insights on the same

Very recently, I got an opportunity to learn a bit on one of most innovative companies in the world 3M. A key item that was bit indigestible for me is how can a company spread itself successfully into so many verticals like Healthcare, Security Services, Consumer and Office, Automotive, Displays and Graphics, Electronics etc with a whole lot of innovative products (www.3m.com). The list of products that you can browse through is only major ones and in one my meetings I understood that their product catalogue has around 60,000 distinct products

On doing some research, finally I found the answer as 3M’s ability to “Leveraging Core Capabilities” is the key driver behind its astonishing success. Essentially 3M’s core capabilities lies in mastering the below technologies

  1. Abrasives (Materials used to shape or finish work piece by rubbing)
  2. Adhesives (bonds items together)
  3. Thin films (Films of very minute thickness)

All 3M did is using its core competencies in the above technologies it came up with innovative customized products that can be applied  in various verticals like Sun films in Cars (Thin films and adhesives), Post-it notes for Stationery use (Adhesives), scotch-Brite for kitchen cleaning (Abrasives), Surgical tapes in health care (Adhesives) etc.

In addition to the above 3M mastered the art of “quick new product development and marketing” to make those innovative products successful in the market. So in essence though 3M as a company has 60000 distinct products, at the end it leveraged his core capabilities in technologies of Adhesives, Abrasives & thin films to create all of them going hand in hand with its ability to manage quick product development and marketing.

I also read through a common list of core capabilities and successful companies leveraged the same

  1. Strategic management of managing multiple businesses – General Electric, Procter and Gamble
  2. Strategic innovation – Google, 3M, Apple
  3. Fast new product development – Canon, Zara
  4. Design Capability – Nokia, Apple
  5. Brand management – P&G
  6. Effective Sales Promotion and execution – Pepsi, Coke
  7. Efficiency and Speed of Order Processing – Dell
  8. Speed of Distribution – Amazon.com
  9. Great customer service – Singapore Airlines, Caterpillar
  10. Comprehensive integrated MIS network for fast decision making – Wal-Mart
  11. Acquisition management – CISCO
  12. Operational Efficiency – Toyota
  13. Research – IBM, Merck
  14. Reputation by Quality – Johnson and Johnson

 So knowing the fact that “Leveraging core capabilities” is a key element for success of a company, also now understanding the finer details of what it means and being aware of some of the core capabilities leveraged by many of the companies in the world, can you think through what are CRMIT’s core capabilities and how can CRMIT leverage its core capabilities to succeed? Post your ideas to suggestions@crmit.com


3 thoughts on “Leveraging core capabilities…

  1. Pingback: How to Prepare Yourself for Future Opportunities | The Talkative Man

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