Market Potential Index International business can be quite challenging and unsuccessful, if multinational companies do not look at the environment where they want to explore and invest. There are different aspects and market dimensions that can tell decisions makers if it’s convenient to invest in different markets. According to Global Edge (2014), “Global marketing has become more and more important over the years with the increasing trend of internationalization. Faced with too many choices, marketers have the challenge of determining which international markets to enter” (para. 1). The market potential indicator (MPI) is an index that can help marketers understand statistically how consumers behave and use these numbers to analyze potential countries and its risks. Based on the MPI …show more content…
Based on the MPI developed by the Michigan State University Center, there are eight different dimensions that assist companies to compare, potential markets and help them to make better decisions. Those dimensions are: Market size, Market Intensity, Market Grown Rate, Market Consumption Capacity, commercial infrastructure, Market Receptivity, Economic Freedom and Country Risk. These dimensions are measured based on indicators explained above. In my opinion, Electricity Consumption, Private Consumption as a percentage of GDP and consumer expenditure indicators, Income Share of Middle-Class, households with Internet access, number of PCs will provide an idea on how a country perceives and invests in technology, Business risk and country risk will provide better understanding and analysis for companies that markets laptops. Finally, the countries that would be ideal for this company to enter are France, Germany, United Kingdom, Japan, Canada and Mexico because of its decent levels of MPI and
Global marketing is defined as marketing on a worldwide scale, or taking commercial advantage of global operational differences, similarities and opportunities in order to meet global objectives. Marketing managers are also tasked with the responsibility of “wringing the pennies out of the activities.” Basically, they are responsible for and add value to their activities that will contribute to a higher value in the mind of their consumers. Managers must understand the role of their salespeople as marketers – they must collaborate and support them. They must work with their supply chain functional managers to accommodate international customer preferences. Communication must flow up and down the chain quickly in order to respond to emerging international marketing threats and opportunities. It is essential to monitor the firm’s global marketing efforts in a global market.
The Power of the Market by Milton and Rose Friedman is about central economic planning and the relationship between the government and its role in the economy. Economic freedom “and essential part of economic freedom is freedom to choose how to use our income: how much to spend on ourselves and on what items; how much to save and in what form; how much to give away and to whom.” “Currently, more than 40 percent of our income is disposed of on our behalf by government at federal, state, and local levels combined.” Is that really freedom? In reality there is no economic freedom, the government controls it. They have their hands in almost everyway possible to make money off of every American. We are nothing but “customers” who work hard to survive while the government has their hands in our pocket every step of the way.
Defined by IEG (2013) as “cash and/or in-kind fee paid to a property in return for access to the exploitable commercial potential associated with that property”. The adoption and increasing adaptation of sponsorship exemplifies one of the most rapidly developing sectors of marketing communications activity. Evidenced by the fact that the total UK investment in this medium was only £4 million as recently as 1970 (Buckley, 1980; p10-14). However by 2015 the scale of expenditure in the worldwide market is estimated at £28.9bn and will become the largest stream of revenue in sport, compared to £28.6bn forecast from gate revenues according to PWC (2013). From the perspective of the consumer, having already been deluged with information sponsorship promotes differentiation amongst competitors and enables organisations’ to break through the immunity that consumers have developed to the innumerable advertising stimuli. (Lagae, 2003; p8). In an unobtrusive fashion, the salient public affiliation between the brand and the sport is thought to alter image perceptions of the brand (Brooks, 1994; pXX). (Milne and McDonald, 1999; p123).
"Market Potential Index (MPI) for Emerging Markets - 2013." GlobalEDGE: Your Source for Global Business Knowledge. N.p., n.d. Web. 19 Nov. 2013.
Global companies play an important role in the business environment, because they connect their business together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.
The external factors can be divided into six broadly categories which are political, environment, social, technology, environment and legal (Johnson, 2005). Such external factors usually are out of the firm's control and sometimes present themselves as threats. In this case, political factor, environmental factor and technology factor will be used to analyse the computer technology industry.
Incorporating cultural influences into our marketing strategy will be critical moving forward in the global market. To have an effective global marketing strategy, we must consider these cultural influences in the country where the new product is being advertised and it must be understood that their citizens’ choices about purchasing the product is based on these cultural stimuli (Hunt 2016).
Kaufmann, L., & Roesch, J. (2012). Constraints to Building and Deploying Marketing Capabilities by Emerging Market Firms in Advanced Markets. Journal Of International Marketing, 20(4), 1-24.
Global segment include relevant new global markets, existing market that are changing, important international political events, and critical cultural and institutional characteristic of global market. When company entering the global, it automatically can increasing number of people believe or consumer in the multiple nation and this si...
AutoEdge is facing crisis since millions of its automobiles has had to be recalled due to product quality issues. Many things should be considered in order to implement a proactive response to rectify the situation. As the research analysis, I have been tasked will helping to rebuild AutoEdge’s reputation as well as to reduce and control operating costs. When making any decision on implementing change within the organization market analysis must look at the market structure of the organization. Market structure is made up of the relationship that exists between buyers, sellers, competition, product differentiation, and ease of entry into and exit from the market. The article “Review of Market Structure” (n.d.) defines market structure as the “microeconomic characteristics of different markets” and include such elements as competition level, high versus low entry barriers, and scale (Review of Market Structure, n.d.) To make the decision the decision to relocate, AutoEdge must analysis and evaluate of market structure. This report will discuss the four different types of market structures: monopoly, oligopoly, monopolistic competition, and pure competition. Additionally, it will outline the type of market structure AutoEdge fits into, how that market structure impacts the level of competition, elasticity of demand, price, and position in the industry.
The international business development has heightened the importance of international market selection (IMS) of companies, especially for their exporting strategy. However, not many companies really comprehend the geographical, social, economic characteristics of foreign countries in comparison with their home countries (Cavusgil, 1985). This fact has challenged many studies to create the optimal approach for IMS. The major question is: Which foreign market should a company enter? Thus, this report focuses on providing a practical consultancy to evaluate and determine its most appropriate foreign markets.
A business is feasible when it is able to generate profits, standstill despite of risks and achieve the founders’ goals (Hofstrand, 2009). In order to meet all of these achievements, the researcher need to investigate investment, technical market and commercial feasibility (How to conduct a feasibility study, 2015). In terms of Business model Canvas, the ‘customer segments’ component presents the market feasibility. Dell has targeted four main segments which allow the company to design, produce, promote and deliver different products with different features. In comparisons, the ‘value propositions’ contribute to the technical feasibility when the product is formed and advertised, ready to deliver. Dell has used different strategies to maintain and developed the brand including remain the same brand name for different products. This strategy is promised to stimulate customers’ awareness of the company, thus, attract numerous number of clients and increase annual profits. Finally, ‘channels’ characteristic focuses on accessing technical feasibility. Dell disposes different channels in order to reduce the transportation and warehouse costs as well as guarantee customers with aggressive on-time delivery. Consequently, as the cost has been lowered and the reputation has been improved, Dell is expected to maximize their revenues
We expect to compete as a thriving computer industry. The computer industry has stable growth in the Philippines today. Laptops are now in demand as they replace the need for personal computers.
Today, in a highly competitive market and the growing technological age businesses must adapt in order to sustain themselves and maintain competitiveness. With globalization increasing, there are more opportunities for cheaper resources and untapped markets. As a result, foreign markets are a natural progression for any domestic or global corporation. Growth in networks of economic, political, social, scientific, or environmental interdependence to span worldwide distances has created a more integrated world and market. These opportunities, however,
Even during the Asia economic woes of the early 1998, Dell’s sales in Asia rose 35%. Its sales at the Internet Web site were about $5 million a day and expected to reach $1.5 billion annually by the year-end 1998. Since 1990, Dell’s stock price had exploded from 23 cents per share to $83 per share in May 1998 with a 36,000% increase and was the top performing big company then. Dell’s principal products include desktop PCs, notebook computers, workstations, and servers. Its products and services are sold in more than 140 countries.