The beauty of running a business is to be able to take your ideas and products to other parts of the world. There are thousands of companies that have managed to take their business across borders from where they were founded and become successful transnational companies. When companies can perform exceedingly well on the transnational scale, they are regarded as a transnational corporation and are highly appreciated. They have massive factories in every country they have a presence in and supply to the locals to a large scale. Getting to this position involves a lot of hard work, research, a study of the audience and steady development. Companies who are looking to go into the transnational space can benefit from learning from the mistakes and strategies used by other existing transnational companies. One of the best companies to study to understand transnational business is Coca Cola.

What is Coca Cola

Being of the biggest and most popular soft drinks manufacturer in the world, Coca Cola started in Atlanta, Georgia. If there is one thing the company has managed to secure is a brand identity amongst every audience around the world. They boast over 400 products and are located in over 200 countries around the world. The incredible fact and reason why Coca Cola is an excellent transnational company to study are that their sales are generated mostly from outside America. In fact, 70% of the sales are from outside. 

Coca Cola
Coca Cola

How Coca Cola Works as A Transnational Company

While the entire idea of talking about the strategies and ideologies that Coca Cola uses to be a successful transnational company is profound, there is one thing that stands out – Their diversification and their presence. Three things to take into consideration when talking about Coca Cola’s transnational presence are as follows:

  1. Diversification
  2. Ease of Transport, and
  3. Presence


Coca Cola has become a master of diversification in the bottled drink sector. Not taking into consideration of the other business ideas that Coca Cola indulges in, the company can understand what the audience in the locale prefer and tailor the drinks accordingly. For example, in a place like India, where bottled water is a significant demand, Coca Cola has its range of bottled water that the consumers relate to the brand and quality. 

Ease of Transport

The other important consideration is transport and by far the most significant cost that a company will incur to be truly transnational. To avoid the costs of transporting bottles that are susceptible to damage, the Coca Cola company only sells the concentrate to other countries. The respective countries bottle them and mix the concentrate in water to supply the demand. A smart strategy will be to study what is available and how to achieve transport cost-effectively. Think of it like a bigger franchise scale that you are targeting. This will ensure you can smoothly conduct business.


Transnational companies, as the name suggest, it means that the company is present in every location the company is marketing to. While a warehouse or a factory line is what most business owners think about when talking presence, take into consideration other factors. Things like marketing and sales are different according to the geological location. Giving the local factory a headquarters in the country will ensure that the research is for the locality. The sales and marketing can then be translated to suit the audience.