Facebo o k users with a large number o f f riends may

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Unformatted text preview: cting a rival because users see that the f irm has the reso urces to beat mo st players (suggesting staying po wer). Statements f ro m start-ups, ho wever, o f ten lack credibility to delay user purchases. The tech industry acro nym f o r the impact f irms try to impart o n markets thro ugh preanno uncements is FUD f o r f ear, uncertainty, and do ubt. The Osborne Effect P reanno uncers, beware. Anno unce an ef f o rt to o early and a f irm may f all victim to what’s kno wn as “T h e Osborne Ef f ect .” It’s been suggested that po rtable co mputer manuf acturer Osbo rne Co mputer anno unced new mo dels to o early. Custo mers o pted to wait f o r the new mo dels, so sales o f the f irm’s current o f f erings plummeted. While evidence suggests that Osbo rne’s decline had mo re to do with rivals o f f ering better pro ducts, the negative impact o f preanno uncements has hurt a ho st o f o ther f irms.A. Orlo wski, “Taking Osbo rne o ut o f the Osbo rne Ef f ect,” The Register, June 20, 2005. Amo ng these, Sega, which exited the video game co nso le market entirely af ter preanno uncements o f a next-g...
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