PESTLE-Analysis for the Russian Software Market
PESTLE-analysis for the Russian software market
Factors / Trends / Impact on the company / Possible actionsP
(policy) / Slow reduction of corruption
In 2013, Russia was ranked 127th in the corruption perception index, in 2012 – the 133rd place, in 2011 - the143rd. Proof / This trend has a positive effect on the promotion strategy on the Russian market / To solve the problem of additional costs for entering new markets
Russian state proceeds to electronic document management. Officials stimulate, including financial helps, informatization of processes of municipal institutions in all regions of the Russian Federation. Proof / This trend has a positive effect on the promotion strategy on the Russian market / To engage actively in tenders and to establish relations with government officials,who make decisions to purchase
E
(economy) / Economic stagnation
GDP growth in Russia in I quarter of 2014 amounted to 0.9%; in 2013 slowed to 1.3% from 3.4% in 2012. Proof / This trend slows the spread of the software product to the masses / To optimize costs, to conduct research in the development of the cheapest and high-quality product
S
(society) / The share of parents’ expenses on the child remains unchanged.It is about 30% of the family budget in million cities and less than 10% in small cities. The average income per person in the family slightly decreased – about 0.3%. Proof / This trend has a positive effect on the promotion strategy, because the share of expenditure on the child does not change / Using the "parental control" function increase the level of loyalty to the program complex, making it a part of the expenditure in the family budget
Increasing birth rate in Russia and Tomsk region.In Russia, the birth rate exceeds the death rate in 2014. Proof
In 2013, 14,809 children was born in Tomsk, in 2013 - 14,809, in 2011 - 13,854.Proof / This trend has a positive effect on the promotion strategy on the Russian market / Kindergartens will work stable, there will be new kindergartens
Resistance of adults on nformatization.In Russia, about 50% of adults do not know how to use a computer. Proof / This trend has a negative effect / To educate users, to create an intuitive interface, to show the positive effects of the use of the software.
T
(technology) / High level of technological development. Cloud computing power is constantly becoming cheaper. Proof / This trend has a positive effect on the promotion strategy on the Russian market / To continue using cloud technologies. To develop extra competitive advantages.
Using different formats and standards for software development.
There are many tools for software development, so it might be a problem of compatibility with the state registries and software developers. Proof / This trend affects negatively, because it can interfere with normal operation of the software system, reducing the customer's loyalty to the software / To know in advance the type of electronic standards that the state uses to generate statistics
L
(legislation) / Tightening of the law on electronic digital signature (EDS).EDS issued free of charge only to budgetary institutions - educational institutions (schools, kindergartens, universities), hospitals and clinics, state and municipal enterprises. For other companies EDS certificate is given only for one calendar year, after that a new one must be obtained. Proof / This trend has positive and negative effects: it complicates the entry of new competitors. Not all private kindergartens will be ready to pay for a digital signature. / EDS can be provided free of charge to private organizations. However, at the conclusion of the contract with the customer, we need to specify the conditions of use.
Probability of changes in tax legislation. In 2013, the Duma has prepared changes to the Federal Law "On Insurance Contributions to the Pension Fund of the Russian Federation, the FSS and Federal Mandatory Health Insurance Fund". For small IT companies (consisting of at least 7 persons) the amount of insurance payments will be reduced to 14% instead of the standard 34% after accreditation. Proof / This is a positive trend for many IT-companies. / Our organization employs 10 people, it gives tax benefits for our organization.
E
(ecology) / Environmental degradation. In Russia, 53% of children have poor health, 2/3 of children under the age of 14 years have chronic diseases, and only 10% of school graduates can be called healthy. For the past five years, the overall incidence of children under the age of 14 increased by 16%, 15-17 years of age – by 18%. Proof / High level of disease raises the demand for using medical history, which should be in the patient's easy access / To provide the most convenient using of medical cards and reliable storage of patient records.
Harm from the use of personal computers. Being near the computer can cause a violation of the body's systems because of inactive work, and problems with the visual system. Proof / This trend has very little effect on the industry, because modern man and computer is practically inseparable / To advise to users to take breaks between the use of the computer every 45 minutes