PIMS is a statistical model that investigates the relationship between strategic variables and profitability of companies. It was the result of the initiative taken at General Electric in the 1960’s under the leadership of Sidney Schoeffler.
This model relies on empirical data across various industries to study the impact of various strategic variables on profit volumes of organisations. It was a major breakthrough in the field of marketing studies in that it relied on a verifiable method of empirical analysis using regression techniques as opposed to bald conceptual frameworks not supported by hard data from the industry. The model is an endeavour to generalise the strategic determinants of profitability without disregarding the peculiarities of a given market terrain.