Visit the Market Potential Index for Emerging Markets page at GlobalEdge. Market Potential Indicator (MPI) is an index used to compare emerging markets along various dimensions. This index was developed as a result of an extensive study by MSU CIBER (Michigan State University Center for International Business Education and Research). In a cohesive and concise paper, answer the following questions:
- What are the indicators used in developing this index?
- Which of the indicators, in your opinion, would have a greater impact for a company that markets laptop computers?
- Using the MPI, which countries would be ideal for this company to enter? Why?
- Guidelines for Submission: Short papers should use double spacing, 12-point Times New Roman font, and one-inch margins. Sources should be cited according to a discipline-appropriate citation method. Page-length requirements: 1–2 pages (undergraduate courses) or 2–4 pages (graduate courses).
There are 8 indicators used are:
- Market size
- Market intensity
- Market growth rate
- Market consumption capacity
- Commercial infrastructure
- Market receptivity
- Economic freedom
- Country risk
The important indicators for company that markets laptop computers are:
- Market size: Market size is a very important indicator for any company. It helps company identifying the potential any market has.
- Market intensity: It discusses about the purchasing power, disposable income and affordability of the product.
- Market consumption capacity: The middle class segment potential is discussed by this indicator
- Commercial infrastructure: identifies whether the product is supported by commercial infrastructure.
BRIC nations i.e. Brazil, Russia, India, China are good example which could be chosen by laptop company as these nations have large market size and growing economy.