This paper will present a brief introduction about the Market Potential Indicatior (MPI) and its components. Moreover, a hypothetical case study of company that markets laptop computers will be analyzed with respect to the indicators of MPI. Lastly, the paper will evaluate which countries would be an ideal market for such a company. MPI has been formulated after considering a number of indicators and is used to compare emerging markets with one another. The significance of MPI has increased due to the effect of globalization, as companies are looking to invest in new and emerging markets. For this purpose MPI has become vital for such companies and greatly influences their decision to market their products in foreign countries. There are eight components or indicators in total that define MPI, which includes market size, commercial infrastructure, economic freedom, country risk, market consumption capacity, market growth rate, market intensity and market receptivity (Banks and Banks, 2005, Heisinger, 2009). The first indicator, market size, signifies the percentage of the population living in urban areas and their average electricity consumption. The second indicator is growth rate, which presents the historical data on a particular product. The third indicator of market consumption capacity presents an analysis of national consumption and income. The fourth indicator is the commercial infrastructure, which demonstrates the technological capabilities of the target
compared to consumption in the East Central Region. Both follow the same curve as total U.S. consumption. This curve is similar to maturity stage of the product life cycle curve
Low- and high-consumption demand scenarios were used to account for doubts in the data collected
For Wal-Mart variable costs involves materials, labor, supplies, and utilities. In businesses that deal with employees’ labor supply and demand should be a consideration by management or ownership. No business that requires
3. Identify and use criteria to determine suitability of the international market based on criteria included in the Marketing Plan and/or included in country profiles on the TTNQ web site. Then based on these criteria, discuss which of the 2 countries that you have researched offers the offers the best potential for TTNQ? Why? Which factors were important in making your decision?
This section presents relevant background data on the current financial macro environment, market segmentation, competition, target market, product and distribution. The data has been obtained from the Marketing Manager and the IT department.
– Average expenditure on the product or service in the identified country or geographic region for 2010, 2011 and 2013 and forecasted demand for the product or services based on these figures.
2. Your Assessor may want to discuss written answers with you to get further evidence of your understanding and to check that it is your original work
Factors that affect demand, supply, and equilibrium prices in the market in which the competing organization operates; define the market for your chosen product, including an analysis of its competitors, potential customers, or potential buyers.
The financial analysis expressed in this paper shows a comparison of two large firms in the communication and technology industry. Microsoft and Apple Inc. both deal in telecommunication gadgets and accessories within the United States and around the world. The paper focuses on the financial comparison of the two companies for two fiscal years of the year 2014 and 2015. A close analysis of the financial ratios is employed in bringing up the comparison. These rates are derived from the balance sheet and statement of income of both firms.
building strategies to invest in the emerging markets of the Exotican continent, with the primary
With this come different strategies to achieve growth such as through market penetration, product development, market development and diversification. When these all are broken down in details, it becomes a clearer picture. So when it comes to market penetration it is the objective of reaching higher number of sales and having a larger share with products already existing. Out of the four strategies this is the least risky one. However, there is still some low risk because prices which are low are being used to penetrate markets and it could lead to potentially damaging price wars that reduces the profit margins of all firms in the industry. When it comes to market development, it means to sell the products already existing in a market, but to sell them in a new market, this includes exporting goods to overseas markets or selling to a new market segment. When it is about Product development it is the progress made in current existing products and then sold or even new products being sold in existing markets. For example, the launch of red bull standard, they took a product which had already been in the market before, changed it a little bit and modified it and converted into a different version and sold it in the same market where red bull standard was sold. Product development is about creating something new or modifying product into its better self to attract consumers. Moving to Diversification- it means selling unrelated goods or new products, in new markets The
There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.
Investing in emerging markets offer tempting advantages to investors. The volatile economies of countries considered to be in this category have a potential for extraordinary returns. A caveat to investors considering opportunities in emerging markets are the presence of unstable governments, the chance of nationalization, poor property rights protection, and large swings in prices. Emerging markets are far from a sure thing. But, despite high individual risk, emerging markets can reduce portfolio risk. The volatile economies of these countries have such low correlations compared to the domestic market that they actually provide the greatest degree of diversification.
Both Dell and HP are two strong players in PC industry which refers to an industry where companies produces PCs (desktops and notebooks), handheld devices (smart phones and tablets), and workstations. However, with growing global expansion, Dell and HP’s performance differs. Dell, once the world’s largest PC maker in 2001, has continually lost its market share to HP and Acer since 2007 (Guglielmo 2009). The cause is rooted in two differences of these companies: company diversifications and core competences. Therefore, how firms can continually survive in the PC business is more of an issue for Dell than for HP.
After sifting through the leads and finding the right ones to investigate management must formulate an international marketing plan. This further helps management in locating potential markets for their products. The first step is to use secondary research to find out what the sales potential is in a given market. Asking the questions of need, demand, and support gives one a starting point for research. If we were a company that sold pants we might want to ask the following questions. Is there a need for pants? Is it cold enough there to wear pants? Do people that demand the pants have money? These are the questions that one should ask of potential markets. Table 1-located at the end of the paper-shows the statistics that are needed for a general market picture. After gathering the information from the secondary research, the picture of a potential market becomes more evident. However, to make the picture clearer, one must conduct primary research. This research outlines the specifics of the potential market that directly pertain to the product. Robert Douglas' book, Penetrating the International Market, addresses the issue of locating potential markets in greater detail.2