Market Potential Indicators (MPI) Hoang dang my linh Market Potential Indicators Conducted by Michigan State University Center for International Business Education and Research Purpose: To rank the market potential of 87 identified countries To provide guidance to the U.S companies that plan to expand their markets internationally Dimensions and Measures of MPI dimensions, representing the market potential of a country on a scale of to 100 The dimensions are measured using various indicators The dimensions are weighted in determining their contribution to the overall MPI Dimensions and Measures of MPI Dimension Weight Market Size 25/100 Market Intensity Market Growth Rate 15/100 12.5/100 Measures Used • • • • • Electricity Consumption (2011) Urban Population (2012) GNI per Capita Estimates Using PPP (2012) Private Consumption as a percentage of GDP (2012) Average Annual Growth Rate of Primary Energy Use (Between years 2007-2012) • Real GDP Growth Rate (2012) Dimensions and Measures of MPI Dimension Weight Market Consumption Capacity 12.5/100 Commercial Infrastructure 10/100 Measures Used • • • • • • • • • Consumer Expenditure (2013) Income Share of Middle-Class (2011) Cellular Mobile Subscribers (2012) Households with Internet Access (2012) Main Telephone Lines (2012) Number of PC's (2012) Paved Road Density (2013) Population per Retail Outlet (2013) Percentage of Households with Color TV (2013) Dimensions and Measures of MPI Dimension Weight Measures Used Market Receptivity 10/100 • Per Capita Imports from US (2013) • Trade as a Percentage of GDP (2012) • Economic Freedom Index (2014) • Political Freedom Index (2013) • Business Risk Rating (2014) • Country Risk Rating (2013) • Political Risk Rating (2014) Economic Freedom Country Risk 7.5/100 7.5/100 Dimensions and Measures of MPI Toward a company: Market Size (25/100) Market Intensity (15/100) Market Growth Rate (12.5/100) Market Consumption Capacity (12.5/100) => China (100), India, Japan (54) .. .Market Potential Indicators Conducted by Michigan State University Center for International Business Education and Research Purpose: To rank the market potential of 87 identified... their markets internationally Dimensions and Measures of MPI dimensions, representing the market potential of a country on a scale of to 100 The dimensions are measured using various indicators. .. 7.5/100 Dimensions and Measures of MPI Toward a company: Market Size (25/100) Market Intensity (15/100) Market Growth Rate (12.5/100) Market Consumption Capacity (12.5/100) => China (100),