ABSTRACT
PIMS is the Profit Impact of Market Strategy, a research study which assessed the key variables affecting profit. Three principal factors define an organization's performance: strategy, competitive position and market/industry characteristics. Market structure, competitive position and strategy and tactics are interdependent and affect performance. Market share and profitability are strongly related. Most strategic factors that boost return on investment also contribute to long-term shareholder value. Market leaders command higher prices and maintain their leadership position by offering products and services that are superior relative to those offered by their competitors. Selling price inflation, degree of product/service standardization and the extent of industry exports and imports are also important issues. The model can help to identify the most important variables affecting performance and assess their interdependence. Performance may then be improved through influencing variables for example, by increasing effective marketing spend.
