Market Potential Index

Market Potential Index for Emerging Markets - 1998

October 17, 1997

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-CIBER 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. You are currently viewing an old version of the MPI. The most recent version of the Market Potential Index can always be found on globalEDGE at: http://globalEDGE.msu.edu/resourceDesk/mpi/
2. The index for previous years can be reached through the MPI Archive table on the right column.
3. To sort by any dimension, click on the name of the dimension, its "Rank", or its "Index" heading.

MPI for 1998

Countries	Market Size		Market Growth Rate		Market Intensity		Market Consumption Capacity		Commercial Infrastructure		Economic Freedom		Market Receptivity		Country Risk		Overall Index
	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index	Rank	Index
Singapore	23	1	1	100	9	60	10	65	2	87	6	67	1	100	1	100	1	100
Hong Kong	21	2	9	66	1	100	8	72	5	82	1	100	2	68	4	78	2	90
Korea, South	6	13	3	86	14	48	6	83	13	24	5	68	6	14	2	83	3	60
Israel	20	2	8	70	6	75	1	100	6	75	8	61	4	17	9	61	4	57
China	1	100	5	76	23	1	9	69	19	7	23	1	20	5	13	51	5	56
Portugal	22	2	15	49	4	76	-	-	7	70	3	73	11	9	3	82	6	44
Czech Rep.	15	4	19	38	13	55	4	90	3	83	2	80	5	16	10	59	7	43
Malaysia	16	3	2	89	20	33	13	47	11	31	15	45	3	35	6	76	8	42
Greece	17	3	16	48	3	91	-	-	1	100	11	60	13	8	11	57	9	41
India	3	55	10	64	17	42	7	78	23	1	21	27	21	2	15	40	10	40
Hungary	19	2	21	29	10	60	3	98	8	69	7	63	10	10	4	78	11	36
Poland	9	10	14	51	15	45	2	99	9	52	13	58	15	7	17	37	12	33
Thailand	14	5	4	84	19	34	13	47	21	5	12	59	7	14	8	64	13	32
Chile	18	3	7	74	12	58	17	21	15	20	4	72	12	9	7	69	14	31
Philippines	13	6	12	59	11	59	11	64	12	27	14	53	8	11	17	37	15	25
Indonesia	7	12	6	76	22	25	5	85	22	3	22	24	16	7	12	52	16	23
Argentina	11	7	20	34	2	96	-	-	10	35	10	60	22	2	19	30	17	19
Turkey	10	10	11	61	8	61	-	-	16	19	17	37	17	6	21	19	18	13
Russia	2	60	23	1	21	32	12	51	4	82	20	32	19	5	23	1	19	12
Brazil	4	31	13	56	16	43	19	1	14	23	16	42	23	1	20	30	20	10
South Africa	8	12	18	41	18	40	18	13	20	6	9	61	18	6	14	50	21	5
Mexico	5	17	22	20	7	66	15	43	18	8	19	34	9	10	16	39	22	2
Venezuela	12	6	17	48	5	75	16	32	17	10	18	37	14	8	22	11	23	1

Year to Year Comparison of MPI

Countries	2008	2007	2005	2004	2003	2002	2001	2000	1998	1997
	Rank	Rank	Rank	Rank	Rank	Rank	Rank	Rank	Rank	Rank
Singapore	3	3	2	2	2	2	1	1	1	1
Hong Kong	1	2	1	1	1	1	3	2	2	4
Korea, South	5	6	4	3	3	3	2	10	3	9
Israel	9	5	5	5	4	4	8	4	4	5
China	2	1	3	4	5	5	5	6	5	2
Portugal							4	3	6	12
Czech Rep.	6	7	7	7	7	7	7	7	7	7
Malaysia	14	12	13	14	13	17	15	16	8	13
Greece							6	5	9	8
India	11	9	9	8	9	10	11	8	10	10
Hungary	7	8	6	6	6	6	10	11	11	16
Poland	10	10	8	9	8	8	9	9	12	6
Thailand	16	15	12	13	12	12	12	18	13	15
Chile	15	16	14	10	11	9	16	13	14	11
Philippines	18	22	20	18	20	19	17	12	15	18
Indonesia	19	21	19	17	16	22	21	23	16	17
Argentina	17	17	21	19	23	15	13	14	17	3
Turkey	13	11	15	15	14	14	20	17	18	19
Russia	12	13	11	12	15	13	19	19	19	21
Brazil	23	23	18	20	17	16	18	21	20	22
South Africa	22	24	22	22	21	20	22	22	21	23
Mexico	8	14	10	11	10	11	14	15	22	14
Venezuela	27	26	23	24	22	23	23	20	23	20

Dimensions and Measures of Market Potential for 1998

Dimension	Weight	Measures Used
Market Size	10/50	Urban population (thousands) - 19951 Electricity production (million kwh) - 19942
Market Growth Rate	6/50	Average annual growth rate of commercial energy use (%) - between years 1980-19952 GDP real growth rate (%) - 19953
Market Intensity	7/50	GNP per capita estimates using PPP (US Dollars) - 19952 Private consumption as a percentage of GDP (%) - 19952
Market Consumption Capacity	5/50	Percentage share of middle-class in consumption/income2
Commercial Infrastructure	7/50	Telephone mainlines (per 1000 persons) - 19922 Paved road density (km per million people) - 19953 Internet hosts (per million people) - 19974 Population per retail outlet - (latest year available)5 Television sets (per 1000 persons)2
Economic Freedom	5/50	Economic Freedom Index - 19976 Survey of political freedom - 19957
Market Receptivity	6/50	Per capita imports from US (US Dollars) - 19959 Trade as a percentage of GDP (%) - 19952
Country Risk	4/50	Country risk rating - 19978
Data used are those available for most recent year. 1 Source: World Resources Institute 96-97 2 Source: World Bank, World Development Indicators - 1997 3 Source: CIA, World Factbook - 1996 4 Source: Network Wizards (http://www.nw.com/) 5 Source: Euromonitor, European Marketing Data and Statistics- 1997 5 Euromonitor, International Marketing Data and Statistics - 1996 6 Source: Johnson, B.T. and T. Sheehy, The Index of Economic Freedom, The Heritage Foundation - 1997 7 Source: Freedom House (http://www.freedomhouse.org/) 8 Source: Euromoney - March 1997 9 Source: IMF, Direction of Trade Statistics Yearbook - 1996 and CIA, The World Fact Book

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.

For additional inquiries, please contact MSU-CIBER.

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