Apple Inc. is a global technology company based in the United States, specializing in hardware and software products, with a yearly revenue of 91.8 billion dollars in 2020.
Louis Vuitton (LVMH) is a French luxury fashion company, offering designer clothes, bags, and accessories, with revenues of 4...
, P1
Apple Inc. and Louis Vuitton (LVMH) operate in contrasting international markets due
to differences in their industries, products, and marketing strategies. Apple is a global
hardware and software corporation that offers personal computers, iPhones, and
innovative product marketing strategies. Their headquarters are in the United States,
and they are the dominant power in the technology sector, ranking as the largest tech
firm in the world and the eighth largest corporation overall, according to "Forbes'
Global 2000 list." Apple's yearly revenue in 2020 was 91.8 billion dollars.
On the other hand, Louis Vuitton (LVMH) is a French fashion company that offers
luxury goods such as designer clothes, bags, and accessories. Their corporate
headquarters are in Paris, France, and they have over 460 locations in 50 countries. LV
is ranked among the top 15 luxury brands in the world, and as of 2021, it is ranked
number 5. LVMH generates revenues of 44.7 billion euros and has over 5003 outlets
globally, despite experiencing a 17% decline in overall sales in 2020.
In summary, while Apple and Louis Vuitton (LVMH) are both global corporations, they
operate in contrasting international markets due to their differences in industry,
product, and marketing strategies. Apple focuses on technology and personal
computing devices with innovative marketing strategies, while Louis Vuitton (LVMH)
specializes in luxury fashion goods and has a significant global presence.
P2
Because Apple and Louis Vuitton are global corporations, they must find innovative
ways to finance their business ventures to the viability of their organisation on their
conditions, international businesses can finance their operations in one of four
methods. For several reasons, they could choose one choice above the others.
An importer making a down payment.
With this tactic, customers must pay in full beforehand, or they risk refusing to do
business with you by withholding goods from you. They need upfront payment since
there is little trust between the importer and their businesses. As a result, payment is
necessary to get the goods that your company needs. This may occur if your firm is
young, your suppliers are unfamiliar with your business strategy, and you don't have a
reliable, well-known organisation possibility is that there is high demand for the
products or services you want, in which case purchasing in advance enables you to lock
in a price so you are aware of the exact amount you must pay.
BENEFIT: Because a portion of the money is collected when the products are
transferred, the exporter can prevent non-payment. There may be a fixed price
if you prepay for products and services, which implies there will be less
difficulty in estimating cash flow.
DISADVANTAGE: Using this tactic may make a buyer's cash flow problems.
Sellers that utilize this strategy to export products may lose out to rivals since
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