Product Market Strategy

Product Market Strategy involves determining that which product to be sold within which Market through market penetration, product development, market development and diversification.

Diversification is assumed to be risky specially the diversification that is unrelated to current product and market.
Apparently diversification that is unrelated to current product and market looks to be risky however in reality it is a way of diversification, distribution of risk by distributing the resources in several products so that if there's a decrease in market share of one product it's compensated by the gain of other different product instead of investing all resources solely in a single product and getting folded right away due to decline in the market share of that specific product.

 
Profit Impact of Market Strategy (PIMS) Analysis 

PIMS analysis elaborates on impact of various marketing strategies on corporate success, it considers competitive strength and market attractiveness as two important determinants of profitability 
PIMS analysis states that there's an observable correlation between profitability and market share that is perhaps the results of lower cost due to economies of scale. Economies of scale owing to increasing market share.