Market Potential Index (MPI) for Emerging Markets - 2010

February 14, 2011

Release Dates

Global marketing is becoming more and more important along the years with the increasing trend in internationalization. Having too many choices, marketers face the challenge of determining which international markets to enter and the appropriate marketing strategies for those countries.

The focus of this study is ranking the market potential of countries identified as "Emerging Markets" by The Economist magazine. These emerging economies comprise more than half of the world's population, account for a large share of world output, and have very high growth rates; all indicators of enormous market potential.

This indexing study is conducted by MSU-IBC to help companies compare the Emerging Markets with each other on several dimensions. Eight dimensions are chosen to represent the market potential of a country over a scale of 1 to 100. Each dimension is measured using various indicators, and are weighted in determining their contribution to the Overall Market Potential Index.

Notes:
  1. The most recent version of the Market Potential Index can always be found on globalEDGE at: http://globalEDGE.msu.edu/knowledge-tools/mpi/
  2. The report for previous years can be reached through the Market Potential Index (MPI) Archive table on the right column.
  3. To sort by any dimension, click on the name of the dimension.

View MPI Table

View MPI Table

Market Potential Index (MPI) for Emerging Markets - 2010

Overall Rank Country Market Size Market Growth Rate Market Intensity Market Consumption Capacity Commercial Infrastructure Economic Freedom Market Receptivity Country Risk Overall Score
1 Hong Kong 1 45 100 48 100 93 81 100 100
2 China 100 100 1 60 33 2 2 64 92
3 Singapore 1 25 81 57 89 77 100 98 90
4 South Korea 10 31 64 100 85 83 15 73 71
5 Czech Republic 1 13 51 94 91 88 13 78 56
6 Poland 4 33 60 78 79 77 5 63 51
7 Israel 1 22 70 74 72 79 19 66 51
8 Hungary 1 1 71 90 82 82 17 60 49
9 India 38 78 26 60 9 47 3 50 48
10 Turkey 6 36 67 65 48 58 10 40 36
11 Brazil 21 36 47 20 52 55 1 50 28
12 Indonesia 11 53 41 63 33 50 1 33 27
13 Mexico 10 18 61 27 46 70 17 51 27
14 Malaysia 3 19 29 73 59 49 28 37 26
15 Chile 2 13 50 24 50 100 11 71 26
16 Egypt 4 45 58 75 39 25 4 34 25
17 Saudi Arabia 4 49 17 54 22 12 71 23
18 Thailand 4 33 36 52 54 43 16 38 21
19 Argentina 4 43 52 45 57 48 3 14 19
20 Peru 2 41 50 36 33 69 3 41 17
21 Russia 24 1 40 49 65 11 2 44 17
22 Pakistan 6 58 61 79 1 29 1 1 14
23 Philippines 5 24 62 48 31 41 5 26 12
24 South Africa 6 24 46 1 12 67 29 48 8
25 Colombia 3 32 48 9 45 55 2 39 7
26 Venezuela 3 34 40 60 43 1 4 6 1

View Year to Year Comparison

View MPI Year to Year Comparison

Year to Year Comparison

Country 2010 2009 2008 2007 2005 2004 2003 2002 2001 2000 1998 1997 1996
Hong Kong 1 3 1 2 1 1 1 1 3 2 2 4 2
China 2 2 2 1 3 4 5 5 5 6 5 2 3
Singapore 3 1 3 3 2 2 2 2 1 1 1 1 1
South Korea 4 4 5 6 4 3 3 3 2 10 3 9 5
Czech Republic 5 5 6 7 7 7 7 7 7 7 7 7 19
Poland 6 7 10 10 8 9 8 8 9 9 12 6 13
Israel 7 6 9 5 5 5 4 4 8 4 4 5 4
Hungary 8 8 7 8 6 6 6 6 10 11 11 16 15
India 9 11 11 9 9 8 9 10 11 8 10 10 10
Turkey 10 12 13 11 15 15 14 14 20 17 18 19 18
Brazil 11 16 23 23 18 20 17 16 18 21 20 22 20
Indonesia 12 22 19 21 19 17 16 22 21 23 16 17 21
Mexico 13 14 8 14 10 11 10 11 14 15 22 14 9
Malaysia 14 10 14 12 13 14 13 17 15 16 8 13 7
Chile 15 13 15 16 14 10 11 9 16 13 14 11 14
Egypt 16 17 21 19 16 16 19 21
Saudi Arabia 17 15 20 18
Thailand 18 19 16 15 12 13 12 12 12 18 13 15 8
Argentina 19 18 17 17 21 19 23 15 13 14 17 3 12
Peru 20 21 25 25 17 21 18 18
Russia 21 9 12 13 11 12 15 13 19 19 19 21 23
Pakistan 22 20 24 20
Philippines 23 23 18 22 20 18 20 19 17 12 15 18 22
South Africa 24 25 22 24 22 22 21 20 22 22 21 23 17
Colombia 25 26 26 27 24 23 24 24
Venezuela 26 24 27 26 23 24 22 23 23 20 23 20 16

Dimensions and Measures of Market Potential for 2010

Dimension Weight Measures Used
Market Size 10/50
  • Urban population (million) -20091
  • Electricity consumption (billion kwh) - 20072
Market Growth Rate 6/50
  • Average annual growth rate of primary energy use (%) - between years 2003-20072
  • Real GDP growth rate (%) - 20091
Market Intensity 7/50
  • GNI per capita estimates using PPP (US Dollars) - 20091
  • Private consumption as a percentage of GDP (%) - 20081
Market Consumption Capacity 5/50
  • Percentage share of middle-class in consumption/income (2009)1
Commercial Infrastructure 7/50
  • Main Telephone lines (per 100 habitants) - 20093
  • Cellular mobile subscribers (per 100 habitants) - 20093
  • Number of PC's (per 1000 habitants) - 20094
  • Paved road density (km per million people) - 20094
  • Internet users (per 100 habitants) - 20093
  • Population per retail outlet - 20094
  • Percentage of Households with TV - 20094
Economic Freedom 5/50
  • Economic Freedom Index - 20105
  • Political Freedom Index - 20106
Market Receptivity 6/50
  • Per capita imports from US (US Dollars) - 20097
  • Trade as a percentage of GDP (%) - 20091
Country Risk 4/50
  • Country risk rating - 20108
Data used are those available for most recent year.

For More Information:

For the indexing methodology, please refer to:

"Measuring The Potential of Emerging Markets: An Indexing Approach" - S.Tamer Cavusgil,
Business Horizons, January-February 1997, Vol. 40 Number 1, 87-91: doi.

"Complementary Approaches to Preliminary Foreign Market Opportunity Assessment: Country Clustering and Country Ranking" - S. Tamer Cavusgil, Tunga Kiyak, and Sengun Yeniyurt
Industrial Marketing Management, October 2004, Volume 33, Issue 7, 607-617: doi.

For additional inquiries, please contact MSU-IBC.

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