As a general rule, you shouldn't threaten to do anything you aren't willing to do. So you shouldn't threaten to take another job offer unless you are willing to do it.
If you value staying at your existing job more than a raise then you are right, you shouldn't do this. But if you are okay with walking and talking about offer them this can be beneficial. I have even heard managers state that certain raises are not possible without another offer that they can bring to HR/whoever to prove that they need to pay someone more to retain them. Doesn't mean the manager necessarily wants to replace you, but it could be a sign of oddities within a large Corp.
If you value staying at your existing job more than a raise then you are right, you shouldn't do this. But if you are okay with walking and talking about offer them this can be beneficial. I have even heard managers state that certain raises are not possible without another offer that they can bring to HR/whoever to prove that they need to pay someone more to retain them. Doesn't mean the manager necessarily wants to replace you, but it could be a sign of oddities within a large Corp.