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Competitor-oriented Objectives: The Myth of Market Share

Armstrong, J. Scott and Green, Kesten C. (2006) Competitor-oriented Objectives: The Myth of Market Share. [Journal (Paginated)] (Unpublished)

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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, indicated that competitor-oriented objectives reduce profitability. However, we found that this evidence has been ignored by managers. We then describe evidence from 12 new studies, one of which is introduced in this paper. This evidence supports the conclusion that competitor-oriented objectives are harmful, especially when managers receive information about market shares of competitors. Unfortunately, we expect that many firms will continue to use competitor-oriented objectives to the detriment of their profitability.

Item Type:Journal (Paginated)
Keywords:competition, market share, objectives, profitability
Subjects:Psychology > Behavioral Analysis
ID Code:5196
Deposited By:Armstrong, J. Scott
Deposited On:05 Oct 2006
Last Modified:12 Sep 2007 18:07

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