| > Elop combined two different CEOs cardinal blunders: The Osborne and Ratner Effects. > In 1983, the computer manufacturer Osborne announced several new models of computers, which they said would be launched in sales after one year. In the meanwhile, sales of the old models plummeted because the consumers were waiting for the new models. Osborne ended up in bankruptcy. Gerard Ratner, on the other hand, was the CEO of the jewelry company Ratners. He gave a speech in 1991, where he said that Ratners products were so cheap because they were “total crap”. The consumers believed him and stopped buying. > Elop announced that Nokia is giving up on Symbian before any Windows Phone smartphone was ready (Osborne effect) and with his “burning platform” speech, expressed that Symbian and MeeGo were trash (Ratner effect). https://medium.com/@harrikiljander/operation-elop-6f2b043f52... |
That was an accurate (and arguably obvious) description of the market in 2011. Nokia had a big problem on their hands and that's true whether they chose to acknowledge it or not.
Should the CEO have stayed silent to his own staff about the perilous fate of the projects they were working on?