The Profit Impact of Marketing Strategies project (PIMS) analysis shows the relationship between market share and profits, as measured by return on investment (ROI); in short, the higher the market share of a company, the higher will be the ROI earned by the company.

Question

Quizplus · Accepted Answer

The PIMS project indeed found a positive correlation between market share and profitability, indicating that, generally, companies with higher market shares tend to have higher returns on investment (ROI). This relationship is attributed to economies of scale, market power, and experience curve benefits among other factors.

The Profit Impact of Marketing Strategies Project (PIMS) Analysis Shows