- All
- Market Analysis
Powered by AI and the LinkedIn community
1
What is MPI?
2
How is MPI calculated?
Be the first to add your personal experience
3
How can you use MPI?
Be the first to add your personal experience
4
What are the benefits of MPI?
Be the first to add your personal experience
5
What are the limitations of MPI?
Be the first to add your personal experience
6
How can you improve MPI?
If you are looking for new markets to enter, you need to assess the potential and attractiveness of each option. One way to do that is to use market potential index (MPI), a tool that ranks countries based on various dimensions of market opportunity. In this article, you will learn what MPI is, how it is calculated, and how you can use it to make informed decisions about your global expansion strategy.
Top experts in this article
Selected by the community from 2 contributions. Learn more
Earn a Community Top Voice badge
Add to collaborative articles to get recognized for your expertise on your profile. Learn more
- Alexis Lyman, MBA Etsy Shop Owner | Moissanite Fine Jewelry Design
3
1 What is MPI?
MPI is a composite index that measures the potential of a country as a market for a product or service. It is based on eight indicators that reflect the size, growth, intensity, consumption capacity, commercial infrastructure, economic freedom, market receptivity, and country risk of each country. Each indicator is assigned a weight and normalized on a scale of 0 to 100, where 100 represents the highest potential. The MPI score for a country is the weighted average of the eight indicators.
Help others by sharing more (125 characters min.)
- Alexis Lyman, MBA Etsy Shop Owner | Moissanite Fine Jewelry Design
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
You can use MPI to quickly identify the countries that are most attractive for your business. MPI takes a range of factors such as population size, growth rate, economic stability, and income levels. With this, you can focus your efforts on exploring new markets. MPI provides valuable insights into market risk, so you can make more informed decisions about where to invest your resources. By combining the power of MPI and a comprehensive market analysis, you can find the best new markets for your business
LikeLike
Celebrate
Support
Love
Insightful
Funny
3
2 How is MPI calculated?
To calculate MPI, you need to collect data on the eight indicators for each country you are interested in. You can use various sources, such as the World Bank, the International Monetary Fund, the World Economic Forum, and the Heritage Foundation, to find the relevant information. Then, you need to normalize the data by dividing each value by the maximum value in the sample and multiplying by 100. This will give you a score for each indicator for each country. Next, you need to assign a weight to each indicator based on its importance for your product or service. The weights should add up to 1. Finally, you need to multiply each score by its weight and sum up the results to get the MPI score for each country.
Help others by sharing more (125 characters min.)
3 How can you use MPI?
MPI can help you compare and prioritize different countries as potential markets for your product or service. You can use MPI to identify the countries with the highest potential, as well as the countries with the lowest potential. You can also use MPI to analyze the strengths and weaknesses of each country based on the eight indicators. For example, you can see which countries have a large and growing market size, which countries have a high consumption capacity and market receptivity, and which countries have a low country risk and economic freedom. This can help you tailor your marketing mix and entry strategy to each country.
Help others by sharing more (125 characters min.)
4 What are the benefits of MPI?
MPI has several benefits as a tool for market analysis and selection. First, it is simple and easy to use, as it only requires data on eight indicators and a weighting scheme. Second, it is flexible and adaptable, as you can adjust the weights and the indicators according to your specific needs and preferences. Third, it is comprehensive and holistic, as it covers multiple dimensions of market potential and attractiveness. Fourth, it is objective and consistent, as it uses standardized and reliable data sources and methods.
Help others by sharing more (125 characters min.)
5 What are the limitations of MPI?
MPI also has some limitations that you should be aware of. First, it is based on secondary data, which may not be accurate, updated, or relevant for your product or service. Second, it is based on averages, which may not reflect the diversity and heterogeneity of each country and its regions, segments, and consumers. Third, it is based on assumptions, which may not hold true in reality or in the future. Fourth, it is based on a single index, which may not capture the complexity and dynamics of each market and its environment.
Help others by sharing more (125 characters min.)
6 How can you improve MPI?
To improve MPI, you can take some steps to overcome its limitations. First, you can supplement MPI with primary data, such as surveys, interviews, or focus groups, to get more insights and feedback from your target market and customers. Second, you can disaggregate MPI by regions, segments, or categories, to get a more granular and nuanced view of each market and its potential. Third, you can update MPI regularly, to account for changes and trends in the market and the indicators. Fourth, you can combine MPI with other tools and criteria, such as SWOT analysis, Porter's five forces, or PESTEL analysis, to get a more comprehensive and balanced assessment of each market and its opportunities.
Help others by sharing more (125 characters min.)
- Alexis Lyman, MBA Etsy Shop Owner | Moissanite Fine Jewelry Design
- Report contribution
Thanks for letting us know! You'll no longer see this contribution
Enhance your evaluation of each market by integrating MPI with other tools, such as SWOT analysis, Porter's five forces, or PESTEL analysis, to gain a more complete, multi-faceted understanding of the potential opportunities
LikeLike
Celebrate
Support
Love
Insightful
Funny
3
Market Analysis
Market Analysis
+ Follow
Rate this article
We created this article with the help of AI. What do you think of it?
It’s great It’s not so great
Thanks for your feedback
Your feedback is private. Like or react to bring the conversation to your network.
Tell us more
Tell us why you didn’t like this article.
If you think something in this article goes against our Professional Community Policies, please let us know.
We appreciate you letting us know. Though we’re unable to respond directly, your feedback helps us improve this experience for everyone.
If you think this goes against our Professional Community Policies, please let us know.
More articles on Market Analysis
No more previous content
- What are the key sources of data and information for conducting a market analysis? 27 contributions
- How do you use segmentation to identify and analyze your competitors and their strategies? 34 contributions
- How do you assess the competitive intensity and rivalry in a new market? 39 contributions
- What are the key factors to consider when evaluating the attractiveness of a potential market? 13 contributions
- What are the main challenges and benefits of franchising as a market entry strategy? 22 contributions
- How do you use SWOT analysis to evaluate your strengths and weaknesses in a market? 16 contributions
- How do you use scenario planning or forecasting to anticipate and prepare for future market trends? 27 contributions
- How do you manage and prioritize multiple market analysis projects and tasks? 18 contributions
- What are some of the best sources and tools for conducting secondary market research? 14 contributions
- How do you balance market validation with your own vision and intuition? 6 contributions
- How do you deal with uncertainty and ambiguity in market validation? 13 contributions
- How do you use segmentation to create customer personas and journey maps? 18 contributions
- What are the benefits and limitations of using surveys for market research? 20 contributions
- How do you conduct scenario analysis and stress testing for market risk? 10 contributions
No more next content
More relevant reading
- Managing Distribution Channels How do you manage channel conflict in emerging markets?
- Business Development What are the best practices for assessing competitive threats in the face of economic changes?
- Leadership Development What do you do if your strategic decisions are not aligned with the demands of a globalized economy?
- Business Administration What steps can you take to stay aware of emerging trends and opportunities in your industry?