preview

Market Potential Indicator and Its Components: International Market Analysis

Satisfactory Essays

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

Get Access