Competitor-Oriented Objectives: Myth of Market Share

20 Pages Posted: 25 May 2007  

J. Scott Armstrong

University of Pennsylvania - Marketing Department

Kesten C. Green

University of South Australia - UniSA Business School; Ehrenberg-Bass Institute for Marketing Science

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

Suggested Citation

Armstrong, J. Scott and Green, Kesten C., Competitor-Oriented Objectives: Myth of Market Share. International Journal of Business, Vol. 12, pp. 117-136, 2007. Available at SSRN: https://ssrn.com/abstract=988441

J. Scott Armstrong (Contact Author)

University of Pennsylvania - Marketing Department ( email )

700 Jon M. Huntsman Hall
3730 Walnut Street
Philadelphia, PA 19104-6340
United States
215-898-5087 (Phone)
215-898-2534 (Fax)

HOME PAGE: http://marketing.wharton.upenn.edu/people/faculty/armstrong.cfm

Kesten C. Green

University of South Australia - UniSA Business School ( email )

GPO Box 2471
Adelaide, SA 5001
Australia
+61 8 83012 9097 (Phone)

HOME PAGE: http://people.unisa.edu.au/Kesten.Green

Ehrenberg-Bass Institute for Marketing Science ( email )

Australia

HOME PAGE: http://www.marketingscience.info/people/KestenGreen.html

Paper statistics

Downloads
251
Rank
98,664
Abstract Views
1,362