Introducing a New Product in the Russian Market

Topics: Russia, Economics, Unemployment Pages: 4 (671 words) Published: October 20, 2013
Introducing a New Product to Russia
Russia always has been a bit of a mystery and still is. There are few, if any reliable statistics on the people, media, distribution, business laws, material & labor resources, institutions ore traditions. The information was either unavailable or didn’t not exist. Because of the fear of draconian taxes and organized crime, statistics on an individual’s income may be under-reported. Things change rapidly in Russia and data may become quickly outdated before ever going to press. The marketing in Russia is more of a qualitative than quantitative exercise. Since the collapse of the Soviet Union, Russia has undergone significant changes. Russia has moved from a globally-isolated, centrally-planned economy to a more market-based and globally-integrated economy. The 1990’s brought on economic reforms, privatizing most industry, with the exception of energy and defense-related sectors. The protection of property rights remain weak and the private sector remains subject to heavy state interference. Russia is globally-competitive commodity producer and in 2011, Russia became the world’s leading oil producer. Russia is the second-largest producer of natural gas, holding some of the world’s largest natural gas reserves. Russia is also the top export of metals such as steel and primary aluminum. Unfortunately, Russia’s reliance on commodity exports makes it vulnerable to any volatile swings in global prices. Since 2007, even Russia has introduced programs to reduce their dependency on this sector, and focused trying to build its technology sector. The Russian economy was one of the hardest hit by the 2008-2009 global economics crises as oil prices plummeted and foreign credits that Russian banks and firms relied upon, dried up. According to the World Gank, the government’s anti-crisis package in 2008-2009 amounted to roughly 6.7% of the GDP. As the economic decline bottomed out in mid-2009, Russians economy started to grow....
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