Published by:
Harvard Business Publishing
Length: 8 pages
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https://casecent.re/p/48530
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Abstract
The profit impact of market strategies (PIMS) project is a study of 57 North American corporations representing 620 diverse businesses. The three factors in the PIMS profit model that substantially influence the return on investment (ROI) in a corporation are market share, investment intensity, and company factors. The market share of a corporation relates to its profitability; corporations with a large market share and a superior quality product average the highest return on investment. Investment intensity (the ratio of total investment to sales), also relates directly to profitability. A high ratio of investment to sales results in a low ROI. Company factors, such as size and diversity, also influence ROI.
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Abstract
The profit impact of market strategies (PIMS) project is a study of 57 North American corporations representing 620 diverse businesses. The three factors in the PIMS profit model that substantially influence the return on investment (ROI) in a corporation are market share, investment intensity, and company factors. The market share of a corporation relates to its profitability; corporations with a large market share and a superior quality product average the highest return on investment. Investment intensity (the ratio of total investment to sales), also relates directly to profitability. A high ratio of investment to sales results in a low ROI. Company factors, such as size and diversity, also influence ROI.