Transnational companies have proven their success. And where success can be proven, lessons can be learnt. Lessons which can be applied to achieve growth, widen the reach and enter the next level of your own company. Here are some hand-picked exemplary cases of transnational companies, where key lessons can be learned to ensure success.
Adapting to Changing Market Conditions
This might seem like a simple suggestion which must be applied to all companies. But it is not just adapting, but about how far you are willing to go in responding to new conditions. Markets demands change quickly and adding new products and services is often not enough. It can become necessary to overthink your approach completely and to consider entering new sectors with your company. Today, one of Unilever’s most successful brands is Ben&Jerry’s ice cream. But they didn’t start as an ice cream company. Their main production lines were soap, processed foods, and consumer articles.
How did Unilever become, the world’s biggest ice cream company? It was changing market demands that forced them to adapt, and they did not just add new products. During World War 2, the processed food industry relied heavily on raw materials. When the demand for raw materials dropped, they faced a decision. Either expand into new territory or go bust. So, they grew into totally new sectors. They concentrated their efforts to move into preservation technologies and distribution systems. With their efforts on these new sectors, they were able to innovate the production and packaging of frozen food. And this is what made them the largest ice cream producers. Would they have stuck to just providing new raw materials for food processing, they would not have reached the position they currently hold. In 2016, they grossed $8 billion.
Achieving power through value
One golden rule is always to ensure that your products and services offer the highest value attainable. This will lead not only to success but in the case of transnational companies, it leads to power. And this power can be applied to cause positive changes. For instance, when Facebook and YouTube faced serious critic for sponsoring fake news and offensive content, major advertisers stepped in and demanded changes. They didn`t were OK with it, that their advertisement was placed with, what they called, a “swamp of fabricated news, racist, and offensive content.
Consumers seeing the ads of companies right next to controversial content associate the company with it. This was unacceptable for the advertisers, most of which are transnational companies. They threatened to pull the advertisement placed on YouTube and Facebook. This forced the social media giants to act and remove offensive content. An excellent example of how companies can spark positive social changes. And with these changes comes even more value to the company. So, remember: produce products with the highest value and gain power. Use that power to cause positive changes. Your brand now becomes associated with positive changes which are beneficial for society. And this association brings even further value to your company, which brings us to our starting point.