unrelated activities. Hence, unrelated diversification of product and/or
markets is often tackled through joint ventures, mergers and acquisitions
(see Chapter 10).168 Strategic Marketing: Planning and ControlProductMarketNewNewCurrentCurrentRelatedRelatedUnrelatedUnrelated
Figure 8.11
Expanded
product/market
matrixPIMS analysis
Many influential marketing studies have examined the link between
profit and marketing strategy. These PIMS (profit impact of market strat-
egy) studies aimed to identify the key drivers of profitability and have
recognised the importance of market share as such a driver. Generally
speaking, profits will increase inline with relative market share. This
relationship (Figure 8.12) has influenced marketing thinking, promoting
actions aimed at increasing market share as a route to profitability.Illustrative Example 8.4
Tesco takes on Microsoft
Not content with taking on global retailers such as Wal-mart, Tesco now has Microsoft in its
sights, with the launch of a range of own-brand software. Tesco is offering own-label software
for less than £20. The range includes a word processing, spreadsheet and database package
designed to rival Microsoft Office, plus security and photo-editing software. Packages are
compatible with Word, Excel, etc. files and have similar interfaces. The product is available in
selected stores or over the Internet.