The Evolution Index (EI) is a metric used to evaluate the performance of a product relative to the overall market growth. It is calculated by comparing the growth rate of a specific product to that of the market. The formula for the Evolution Index is:
EI=(1+Product Growth Rate)/(1+Market Growth Rate)
Interpretation:
•EI > 1: The product is growing faster than the market, indicating strong performance and competitive advantage.
•EI = 1: The product is growing at the same rate as the market, indicating average performance.
•EI < 1: The product is growing slower than the market, indicating underperformance and potential issues.
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