The success of introducing any product to the market depends on numerous internal and external factors, which must be studied in detail. One of the most influential of them is the country of business, and Russia can be suggested as a convenient option for the project. According to the statistics, the country ranks 28th in terms of the business climate, which should contribute to the effectiveness of implementing the product in the market (Global Business Knowledge, 2022). Furthermore, economic complications in recent years have weakened competition in multiple market sectors. Vacated niches can be occupied with less investment, and the threshold to enter the business can be crossed without a tremendous effort. Furthermore, the liberal legislation and amount of potential consumers should ensure a rapid increase in profits, making Russia a reasonable option for the product.
It is challenging to imagine a modern man without gadgets: everyone uses cell phones, tablets, laptops, e-books. Therefore, outdoor charging gadgets are relevant and modern products in the market. This idea is successfully realized in developed countries, but it is unique for Russia, where a discharged phone is still a concern for its owner (Panfilov, 2020). It is the largest state globally with a considerable number of people and tourists so the charging machines will be in demand. This market niche is free, and that is why there is a prospect to start a business with minimal investment and gain consumers fast.
The use of an outdoor charger is an unexplored novelty for Russian consumers. The culture of distrust is common to the state, carrying severe risks for the product. People do not want to leave their phones in the cells for fear of theft or doubt in the quality of the machine. However, this peculiarity can be avoided by placing instructions and assistance at the initial stage of the product’s launch. It is also crucial to take care of the security of charging machines, equip them with video surveillance and choose the location carefully.
Although a public outlet is the sale of electricity, this activity is not subject to licensing in Russia. Based on the Electricity Use Regulations, the owner of the premises where the chargers are installed is the end consumer. The only requirement to start the business is registering a sole proprietorship and signing state contracts or agreements with private companies to place the equipment (Panfilov, 2020). The size of the market, ease of registration, and national legal regime will contribute to the business idea. It is also essential to consider the unstable state of the Russian economy. Bureaucracy and the crisis cause lower incomes, which can lead to a drop in consumer demand. Nevertheless, the product does not require a significant investment of funds and is available to everyone. The features of charging machines allow them not to lose relevance even in times of crisis, so the product will be able to withstand economic risks.
The concentration of political power or the monocentric regime has become the central feature of contemporary Russian politics. The foremost obstacles are corruption, administrative barriers, the selective implementation of laws, and state control of the economy (Letova et al., 2018). These negative consequences can be summarized by the statement that the regime objectively narrows the support base for modernization. It creates incentives for illiberal elements in the political class and the bureaucracy, used to rigid control over the business. These factors cause hardships in introducing and developing the product in the market.
The technological component of the charging products is straightforward, and the selection of equipment depends on the location. There is no need to make a charging station as the choice of terminals is extensive. The prices vary depending on the technical characteristics, the number of outlets, and the possibility of securing the phone against theft (Letova et al., 2018). There are many options for suppliers in Russia, and one can get a quality product for a reasonable price. Charging stations both with and without storage cells do not need the constant presence of an employee, and the issue of payment is solved automatically.
A gadget charging machine is a unique product for Russia, which may cause distrust. However, it is not an issue as the population will appreciate its convenience shortly. This market niche is free and in development, so there is a possibility to start a business with minimal investment and risk. This product is remarkable in that it can be presented in different ways: a socially oriented business, cooperation with the state or private organizations, and payment on the fact of service from the client. One can choose several outlets or start with one vending machine; buy expensive new equipment or save money. There are several political hazards, but they are balanced by advantages such as volume of the Russian market, simplicity of licensing, and absence of technological complexities. Therefore, all the risks are feasible, and it will be possible to profit from the product quickly.
During the project, there were many fascinating things, and first of all, I would like to highlight the site’s ability to provide all relevant information about the country and its trade opportunities and barriers. It was also remarkable how products are licensed in Russia and how the political situation in the region affects the economy and businesses. Surprisingly, not all companies are losing profits, and on the contrary, there is an opportunity for many startups as market niches are becoming freer. The last thing I would like to mention is the strong correlation between all the components, they influence each other, and the lack of one can be compensated at the expense of the other.
References
Global Business Knowledge (2022). Russia: statistics. GlobalEdge. Web.
Letova, K., Yao, R., Davidson, M., & Afanasyeva, E. (2018). A review of electricity markets and reforms in Russia. Utilities Policy, 53, 84-93.
Panfilov, P. O. (2020). Favorable Business Environment as a Criterion for Criminal Proceedings Effectiveness in Modern Russia. LEX, 73(10), 74.