Market Potential Index for Emerging Market is a tool comprised of several different components. This paper identifies and, where necessary, describes the components known as market indicators. Additionally, I will express and explain my opinion on which indicators are most useful for a company that markets laptop computers. Finally, through use of the index I define which countries the laptop computer company should enter and share my reasoning for my recommendations.
Market Potential Index: An Overview
The Market Potential Index, also known as MPI, is a tool that was developed by
Michigan State University – International Business Center. Its goal is to assist US companies seeking to expand operations internationally. The index …show more content…
The first is Electricity Consumption and the second is Urban Population. An article titled “Energy consumption and economic growth in the United States” cites how we were able to correlate an increase of energy consumption to economic growth (Arora & Shi, 2016). This trend, however, appears to be reversing with the increases in higher energy efficiencies. The correlations were proven out in the 1990’s and earlier however further research needs to be completed to see if these hypotheses still hold true …show more content…
Market Growth Rate
The market indicators in this area are Compound Annual Growth Rate of Primary Energy Use and Compound Annual Growth Rate of GDP. It stands to reason that looking at growth statistics should provide an overall view of where the market growth might be trending toward.
Market Consumption Capacity
Market Consumption Capacity focuses on earnings and spending habits and most specifically on the middle-class. The three market indicators are: Consumer Expenditure, Income Share of Middle-Class, and Household Annual Disposable Income of Middle-Class.
Commercial Infrastructure
Commercial infrastructure had the largest array of market indicators. They focus highly on technology and infrastructure and are as follows:
• Cellular Mobile Subscribers
• Households with Internet Access
• International Internet Bandwidth
• Number of PC’s
• Paved Road Density
• Population per Retail