2. Multinational Corporations
Multinational Corporation- A multinational corporation is a corporation which
operates in more than one country.
Subsidiaries in foreign countries
Stakeholders are from different countries
United States, Japan and Europe are home to most of the multinationals
3. US Based Multinational Corporations
US is the second country of being home to the most number of multinationals
US multinationals accounted for large shares of trading goods(46% with the
foreign countries)
Giving employment to almost 35 million workers in the world
Famous companies with US origin- Facebook, Google, Apple
5. Electronic Industry in US
US electronic Industry is worth $208 Billion
Numerous products available in the electronic industry, smart phones being
number one seller (average 152 million every year)
13% growth in the US electronic industry every year
Most number of engineers are working in the US electronic industry
Constant demand is the strength of the US electronic industry
7. Electronic Industry- Apple
Founded in 1976, by Steve Jobs
2016- company is at 8th position in terms of sales
Known as world’s most valuable brand
Product Development- introduction of innovative products time to time
Generic Strategies: product differentiation, innovation, pricing
Market Penetration: gaining more and more market shares by selling products
to the whole world
Competition- Android Technology- Samsung, Sony, HTC.
8. Electronic Industry- Microsoft
Founded in 1975, by Bill Gates, Paul Allen, current chief- Satya Nadella
Famous for developing software services and products
Main Products- Windows Operating System, professional software
Operations in more than 100 countries
Rivalry- iOS, Android, Blackberry (Major).. Google, Amazon (Minor)
Major Acquisitions- LinkedIn (2016), Nokia (2013), Skype (2011)
9. Electronic Industry- IBM
Founded in 1911 By Charles Ranlett Flint
Major Products- Business related applications, security services, storage
devices
Currently going through transition- target revenue by 2018 is $40 billion
Strategic alliances with other giants like Microsoft
Challenges due to the advancement of technology
10. Automobile industry in US
One of the biggest industry in the world
Dominated by the domestic companies (Honda being the first overseas
company to enter into the US market)
US is world’s second largest producer of vehicles after China
Around 18 million units of vehicles are sold in the year 2015
Contribute 3-3.5% to the GDP
12. Automobile Industry- Ford
Founded In 1903 by Henry Ford
Two business sectors- Automobiles, Financial Services
World’s 40th biggest public company (Forbes)
Sales- $149.56 Billion, 35th most valuable brand
Alan Mulally
First of the few companies to introduce latest technology. example GPS
13. Automobile Industry- Chrysler
Founded in 1925 by Walter Chrysler
Started as an automobile company, was also famous for manufacturing the
military defense vehicles in earlier days
Regained their image as an automobile company in 1983
Subsidiaries- Jeep, Dodge
Acquisitions-American Motor Corporation (1986)
Acquired by Fiat Group in 2014
Future Focus- China, India and Europe
14. Automobile Industry-Chevrolet
Founded in 1911 as an independent corporation (Acquired by GM in 1918)
Current Sales- $74 Billion, 59th most valuable brand (Forbes)
Comprises 45% of the parent company
Target Audience- Younger Generation
Markets- Asia, Europe, Africa (130 countries)
United States- 20.2 % truck market
15. Retail Industry in US
3.6 million retail companies, contributing $2.6 trillion in sales
Numerous direct marketers and sellers are in the retail industry
Retail industry is providing 42 million jobs in the United States
Accounted by the National Retail Federation
Expected Growth- 3.1% in 2016
17. Retail Industry- Amazon
Founded in 1995 as a bookseller store, Jeff Bezos
Latest Technology- Kindle, fire tablet
34% growth in the year 2012 (sales $13.2 Billion)
Competition- Alibaba, eBay
Innovative strategies- selling drones
18. Retail Industry- Walmart
Established in 1969
Currently operating in 50 states of USA, 27 countries
Strategies- Customer services, Employee training, quality services
Major Segment- Sam’s Club
Competitors- T.J Max, K-Mart, Online Retailers
19. Retail Industry- EBay
Established in 1988 as an online retailer store
Known for fast customer services
Segment- stubhub.com, PayPal
Famous in 1500 cities of the world, 800 million items for sale
Auction style format (30% sales)
Competitors- Amazon, Alibaba, Uber
20. Conclusions
Whatever US based MNC’s are earning, in the domestic or the overseas
market, going to benefit the US economy
Success of these MNC’s have lead to the US to become hub of the
Multinationals
Number of foreign companies want to do business in the US due to huge
number of opportunities available
US based MNC’s are also going more into the foreign markets. i.e. Emerging
economies