Nothing gets a team motivated like aspiring to be the #3 player in a market, right? Pragmatic perhaps but this messaging would seem to be pretty demotivating.
The end result was a room full of people scratching their heads and thinking "wow that was stupid", and being generally demotivated because they'd just been set and obviously impossible task by a boss who obviously had no clue. Had he given a speech along the lines of "we have a really unique and interesting product here with strong potential of craving out a significant piece of the market in a small but growing niche" people would probably have left the meeting thinking "yea, we can really make that happen" and been much more inspired.