Home > Knowledge Tools > MPI

Market Potential Index (MPI) for Emerging Markets - 2004

October 19, 2004

You are currently viewing an old version of the Market Potential Index (MPI).

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 - 2004

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 80 100 54 98 92 100 88 100
2 Singapore 1 84 57 62 92 69 60 100 80
3 South Korea 12 78 66 99 76 71 18 62 74
4 China 100 82 1 59 38 1 8 49 73
5 Israel 1 75 75 82 79 78 29 57 69
6 Hungary 1 50 76 100 81 78 24 64 68
7 Czech Republic 2 51 51 97 100 83 24 62 67
8 India 47 96 40 77 14 46 1 38 60
9 Poland 5 34 67 80 66 73 4 56 50
10 Chile 2 78 56 13 54 100 11 57 45
11 Mexico 13 61 66 27 37 66 23 50 45
12 Russia 37 73 28 53 41 21 6 32 42
13 Thailand 4 82 38 54 33 61 22 47 42
14 Malaysia 3 100 15 42 38 33 46 52 40
15 Turkey 8 75 54 67 47 38 7 26 39
16 Egypt 5 90 74 70 22 14 4 25 35
17 Indonesia 12 83 51 72 18 30 6 13 33
18 Philippines 5 82 54 47 1 57 17 23 31
19 Argentina 5 84 55 39 41 52 3 1 29
20 Brazil 26 58 38 13 38 56 1 25 29
21 Peru 2 62 62 53 15 62 2 20 27
22 South Africa 8 51 56 1 13 74 5 44 22
23 Colombia 4 51 52 17 32 39 5 23 16
24 Venezuela 4 1 45 52 25 20 4 2 1

View Year to Year Comparison

View MPI Year to Year Comparison

Year to Year Comparison

Country 2013 2011 2010 2009 2008 2007 2005 2004 2003 2002 2001 2000 1998 1997 1996
Singapore 1 3 1 3 3 2 2 2 2 1 1 1 1 1
Hong Kong 2 1 3 1 2 1 1 1 1 3 2 2 4 2
China 3 2 2 2 1 3 4 5 5 5 6 5 2 3
South Korea 4 4 4 5 6 4 3 3 3 2 10 3 9 5
Czech Republic 5 5 5 6 7 7 7 7 7 7 7 7 7 19
India 6 9 11 11 9 9 8 9 10 11 8 10 10 10
Israel 7 7 6 9 5 5 5 4 4 8 4 4 5 4
Poland 8 6 7 10 10 8 9 8 8 9 9 12 6 13
Hungary 9 8 8 7 8 6 6 6 6 10 11 11 16 15
Turkey 10 10 12 13 11 15 15 14 14 20 17 18 19 18
Brazil 11 11 16 23 23 18 20 17 16 18 21 20 22 20
Mexico 12 13 14 8 14 10 11 10 11 14 15 22 14 9
Argentina 13 19 18 17 17 21 19 23 15 13 14 17 3 12
Malaysia 14 14 10 14 12 13 14 13 17 15 16 8 13 7
Chile 15 15 13 15 16 14 10 11 9 16 13 14 11 14
Peru 16 20 21 25 25 17 21 18 18
Indonesia 17 12 22 19 21 19 17 16 22 21 23 16 17 21
Thailand 18 18 19 16 15 12 13 12 12 12 18 13 15 8
Russia 19 21 9 12 13 11 12 15 13 19 19 19 21 23
Egypt 20 16 17 21 19 16 16 19 21
Saudi Arabia 21 17 15 20 18
Philippines 22 23 23 18 22 20 18 20 19 17 12 15 18 22
Colombia 23 25 26 26 27 24 23 24 24
Pakistan 24 22 20 24 20
Venezuela 25 26 24 27 26 23 24 22 23 23 20 23 20 16
South Africa 26 24 25 22 24 22 22 21 20 22 22 21 23 17

Dimensions and Measures of Market Potential for 2004

Dimension Weight Measures Used
Market Size 10/50
  • Urban population (million) - 20031
  • Electricity consumption (billion kwh) - 20022
Market Growth Rate 6/50
  • Average annual growth rate of commercial energy use (%) - between years 1996-20011
  • Real GDP growth rate (%) - 20031
Market Intensity 7/50
  • GNI per capita estimates using PPP (US Dollars) - 20031
  • Private consumption as a percentage of GDP (%) - 20021
Market Consumption Capacity 5/50
  • Percentage share of middle-class in consumption/income (latest year available)1
Commercial Infrastructure 7/50
  • Telephone mainlines (per 100 habitants) - 20033
  • Cellular mobile subscribers (per 100 habitants) - 20033
  • Number of PC's (per 100 habitants) - 20033
  • Paved road density (km per million people) - 20021
  • Internet hosts (per million people) - 20033
  • Population per retail outlet - (latest year available)4
  • Television sets (per 1000 persons) - 20031
Economic Freedom 5/50
  • Economic Freedom Index - 20045
  • Political Freedom Index - 20046
Market Receptivity 6/50
  • Per capita imports from US (US Dollars) - 20037
  • Trade as a percentage of GDP (%) - 20031
Country Risk 4/50
  • Country risk rating - 20048
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.

Glossary

visit main glossary page