Competitor-oriented Objectives: The Myth of Market Share

J. Armstrong and Kesten Green

MPRA Paper from University Library of Munich, Germany

Abstract: Competitor-oriented objectives, such as market-share targets, are promoted by academics and are commonly used by firms. A 1996 review of the evidence, summarized in this paper, found that competitor-oriented objectives reduced profitability. We describe new evidence from 12 studies, one of which is introduced in this paper. The new evidence supports the conclusion that competitor-oriented objectives are harmful, especially when managers receive information about competitors’ market shares. The evidence appears to have had little effect on managers’ decisions and on what is taught in business schools.

Keywords: Competition; Market Share; Objective; Profitability (search for similar items in EconPapers)
JEL-codes: D4 L1 (search for similar items in EconPapers)
Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Published in International Journal of Business 12 (2007): pp. 117-136

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https://mpra.ub.uni-muenchen.de/81674/1/MPRA_paper_81674.pdf original version (application/pdf)

Related works:
Working Paper: Competitor-oriented Objectives: The Myth of Market Share (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:81674

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