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Job Interview
Case Study: Russian ICT Market
September, 2015
Ivan Shmelev

2
Input
Market 2012 2013 2014
Devices 14,120 14,119 14,288
Personal Computers 6,818 4,732 3,895
Tablets & eReaders 1,581 2,440 2,015
Smartphones 2,986 4,468 6,321
Feature Phones 1,246 1,015 566
Hardcopy Peripherals 821 810 826
PC Monitors 669 654 665
Enterprise Hardware 4,400 4,119 4,462
High End Servers 216 97 100
Midrange Servers 138 85 147
Volume Servers 662 565 680
Disk Systems 454 457 565
Tape 34 35 36
Enterprise Networks 614 590 614
Service Provider Equipment 2,282 2,290 2,321
Software 3,991 4,126 4,073
Application D&D 628 678 713
Applications 2,014 2,135 2,142
System Infrastructure Software 1,350 1,313 1,217
Services 5,770 6,393 6,571
Implementation 3,268 3,560 3,552
Operations Management 383 490 807
Planning 896 968 745
Support Services 960 1,083 1,241
Training and Education 263 293 226
Telecom Services 27,267 28,929 29,019
Fixed Data 3,494 3,937 4,231
Fixed Voice 4,781 4,630 4,386
Wireless Data 4,683 5,240 5,502
Wireless Voice 14,310 15,122 14,900
Total ICT 55,550 57,685 58,413
Note: all data shown in constant US$m

3
Questions
1. What are the current developments on the Russian ICT
market?
2. How do you see the future of the ICT market in Russia and
which market segments are expected to grow fastest?
3. What would you recommend to Microsoft, HP, IBM and
Rostelekom in terms of future growth strategies in Russia?

4
Russian ICT Market
3.8%
1.3%
Russian ICT market
is still growing
but significantly
slowdown in 2014
and will continue
5.2%
US$m
Demand
behavior
shift
Politics
sanctions
against Russia
Economy
currency
devaluation

5
ICT Segments
2014
Telco is still the major
segment of ICT market
in Russia
Reorganization
of market segments

Market Trends
Leaders Losers
Smartphones Devices 111.0% Feature Phones Devices -54.6%
Operations Management Services 110.0% Personal Computers Devices -42.9%
Support Services Services 29.3% System Infrastructure Software -9.9%
Fixed Data Telco 21.1% Fixed Voice Telco -8.3%
New Demand Declining
Midrange Servers Hardware high Tablets Devices high
Volume Servers Hardware high Implementation Services high
Disk Systems Hardware high Planning Services high
Enterprise Networks Hardware medium Training and Education Services high
Wireless Voice Telco medium

Recommendations
Company Sector Mid-Strategy
Microsoft Software
Focus on services for mobile
users
HP
Devices
Hardware
Focus on smartphones and
servers
IBM
Services
Hardware
Focus on Operations
Management
Rostelecom Telco
Focus on mobile and VAS for
Fixed Network

8
Ivan Shmelev
+7 (964) 630.61.60
ivanmba2011@gmail.com
Contact

9