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A portfolio analysis of the organization s products involves classifying them on two dimensions: one internal, the organization s competitive position, and the other external, the attractiveness of markets The competitive position of each business may be measured by determining the organization s ability to match competitors on: cost product quality ability to compete on price knowledge of customers and markets technological capability ability and skills of people t of these factors with requirements for success Internal factors relate to the capability of the organization or its overall competitive business position in regard to its products The organization s competitive position is in uenced by its position in the market, its economic and technological position and its resource capability Market position is usually gauged by reference to market share, the degree of product differentiation, the product mix and the image the organization and its products have in the market Its economic and technological position depend on the cost structure, capacity and patents, trademarks and other secrets The resource capability refers to its management and marketing strengths, its power in the

Russia s infrastructure, though steadily improving, is still considered inadequate to address the demands of a developing economy, yet it equals or exceeds that of the other six sizzling BRIC+2 nations by comparison Russian infrastructure had been deteriorating for decades, even prior to the fall of the Soviet Union, and with the transition from communism, the government had been slow to respond

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Given Russia s vast territory and the fact that the population is overwhelmingly urban, large parts of the nation lack access to modern transportation Almost 90 percent of Russia s economic routes, such as railroads and highways, run through Moscow Relying almost entirely on railways for the transport of goods and materials, Russia s roads are ill equipped to accommodate a developed trucking industry The rail system ranks among the largest and most expansive in the world, with over 90,000 miles of tracks, but roughly half of that distance is designated for passenger service Of Russia s 600,000 miles of highway, huge portions remain unpaved and receive inadequate maintenance Russia s waterways and airports, however, help offset the negative aspects of Russian infrastructure With over 1,600 airports, 50 of which can accommodate international ights, Russia has greatly improved on the foundation established by the Soviet Union Russia s waterways, which span almost 65,000 miles, serve as an ef cient conduit for Russian goods in cities such as Kaliningrad, Kazan, Moscow, and St Petersburg The nation s merchant marine eet has almost 800 oceangoing ships Russian success in developing its infrastructure has been attributed to a surge in capital investment, especially from the government In September 2007, the Russian government promised to invest $1 trillion in the nation s infrastructure by the year 2020 Much of that investment will be allocated toward the oil industry and projects such as the 2,500-mile-long Druzhba pipeline, which connects Russia to central Europe, will likely increase in the coming years Though Russia s infrastructure is aging and insuf cient, investors can expect sectors such as construction to boom in the coming years as the government prioritizes the developments with massive amounts of public and private funding

Like most developing economies, Russia is plagued by a host of environmental problems and consequently receives an investment ranking of unfavorable Years of Soviet mismanagement and irresponsibility contributed to Russia s current state While some categories of pollution dropped as the economy contracted in the 1990s, major threats remain, and experts believe that real progress in combating these environmental hazards is years away Among the more serious concerns is that of water pollution, as less than half of Russia s population has access to safe drinking water Industrial sources, municipal waste, and nuclear waste combine to worsen this situation A leading spokesman for Russia s Environmental Protection Committee stated that the cost for Russia to comply with international drinking water standards could exceed $200 billion

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Much like China, Russia s air quality is exceptionally poor, with the air in more than 200 cities exceeding international pollution limits This situation is likely to worsen with the proliferation of automobiles and expanded highways, as added emissions negate the improvements in industrial air pollution As Russia has become more of a consumer market, so too has it witnessed a disturbing rise in the amount of solid waste Local municipalities, though improving, have neither the management skills nor suitable infrastructure for the disposal of such waste Finally, problems with nuclear and chemical waste, exacerbated by the well-publicized incidents of Chernobyl and the Kursk disaster, will remain a pressing concern for both Russia and the international community

Market segmentation and positioning [43]

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