ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How Do Transnational Corporation (TNCs) Grow?

Updated on December 10, 2012

Transnational corporations or TNCs, grow in 5 main ways:

  1. Joint Ventures
  2. Franchising
  3. Acquisitions
  4. Diversification
  5. Glocalisation

Joint Ventures

This is when two companies work together for a period in order for one or both companies to develop. Companies usually use joint ventures to expand when they need local knowledge of the market in that area. Or to provide extra capital for the expansion.

An Example of a joint venture is in 2007 Walmart and the Indian company Bharti Enterprises announced the opening of Bharti Walmart Stores in India.


This is a way of expanding with low costs. The owner of a brand or franchise allows another person to open a business under that brand, in a certain geographical area, in return for a cut of the profit.

The 'franchisee' benefits from the reputation of the brand as customers will trust the brand, as well as the 'franchisors' products, systems and help and support.

The 'franchisor' benefits from the profit without having to run an outlet themselves.

An example of this is McDonalds.


This is when one company 'acquires' another buy buying the majority if not all of it's ownership stakes.

This can be friendly, where the company being bought sells its operations to the acquiring company. Or hostile, where the company being acquired is forced to sell large shares to the company taking over.

The company which as acquired the target company usually re-brands it under there own name or merges the companies.

An example of an acquisition is Walmart talking over ASDA UK in 1999.


This is where a company moves away from it's traditional products or services and branches out into new markets. This helps it to grow and expand especially if it started with a niche market.

An Example of this would be Disney.

Disney started in 1928 with the 'Steam boat Willie'

In 1950 it started making live action films, 'Treasure Island' being the first.

In 1955 it opened the first Disneyland themepark.

Disney is now a recognised brand the world over.


This is when a company "Thinks locally, acts globally."

The company may have many branches all over the world, but in those branches it tailors it's products to the local market. This means a company can have relevant products the world over.

McDonald's often glocalises their menu, in Germany McDonald's sells beer!


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)