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Management article
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Reference no. 75103
Published by: Harvard Business Publishing
Published in: "Harvard Business Review", 1975
Length: 9 pages

Abstract

Evidence from an ongoing study of 57 companies to determine the profit impact of market strategies (PIMS) shows that one of the main indicators of business profitability is market share. By presenting evidence on the nature, importance, and implications of the connection between market share and profit performance, a group of business experts attempt to answer such questions as why market share is profitable; what the observed differences between low- and high-share businesses are; and what implications the profitability/market share links have for strategic planning.

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Abstract

Evidence from an ongoing study of 57 companies to determine the profit impact of market strategies (PIMS) shows that one of the main indicators of business profitability is market share. By presenting evidence on the nature, importance, and implications of the connection between market share and profit performance, a group of business experts attempt to answer such questions as why market share is profitable; what the observed differences between low- and high-share businesses are; and what implications the profitability/market share links have for strategic planning.

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