Differences Between A Multi-domestic & A Transnational Company

As large product manufacturing companies continue to grow their global reach and bring products to consumers in new countries, they learn lessons about different business strategies that need to be implemented to create a successful selling campaign.... Two examples of these strategies are multi-domestic and transnational corporations. Consider which of these strategies fits your small business as you target more global opportunities.

·         Both multi-domestic and transnational companies provide businesses with opportunities to compete on a global scale. Multi-domestic companies tailor products to each country and its local environment while a transnational company retains its characteristics across the globe.

Multi-domestic Company Characteristics

A company that follows a multi-domestic strategy fits its products to each country in which it does business. 

Your product features are tailored to the local domestic environment, taking into account different food preferences, religious customs and other characteristics that define the locality. 

If you feel the goods produced by your business would be better received by local customers, opt for this strategy to avoid being branded solely as a foreign company.

Transnational Company Characteristics

Transnational companies also sell products in multiple countries across the globe. This strategy differs, however, in the way the product is marketed in each country.

A transnational product keeps its same characteristics, regardless of the country in which it is sold. The product does not change according to local customs or preferences, so that the product sold in Asia or Mexico is exactly the same as the version sold in the United States or Europe.