We have chosen Russia to be our target market because it has undergone a decline in the production of the agricultural sector and nowadays the country is trying to face this problem. Besides that, we have thought that it could be a great place to offer our product so they can also reach a significant growth in terms of technology. It is important to mention that for this country investment and innovation are quite relevant. It also should be pointed out that 10% of the population work in the agricultural sector and that this business is not well-coordinated.
One of the reasons which explains their problem is the inefficiency in the structure of the sector. On one hand, there are a lot of small family farms and on the other hand there are a lot of exploitations. Those enterprises are used to share their financial profits between the stockholders instead of saving funds to face a future decadence in their production. Remarkably, the lack of financial support and the increase of the machinery price are some of the reasons of the decrease of the agricultural production.
Russia is one of biggest importers of agricultural products in the world so getting our product they could improve in this field because it would be easier and faster for them to farm; with our services their needs would be fulfilled.
Regarding our product for the agriculture, we have thought about working with those small business so they could improve their situation in the market and the sector would be improved as well. These small enterprises will be our target audience; they need to do business with other companies to be more competitive.
We have to mention that at the moment, the foreign investment in the agricultural industry is quite difficult because for foreign enterprises is impossible to acquire land for agriculture.
In terms of technology, Russia has advanced. Nevertheless, great investments are needed. Internet services are improving and the...