It seems to be an interesting approach, but I don't think this is the whole picture.
I am thinking of two situations where I am wondering how that would work:
* small niched vs a big player that is present and known on the whole market
* small business "competing" with another small startup for the same market (eg posterous vs tumblr)
Steve Jobs has mocked Apple's competition for pretty much as long as I can remember... and laughed all the way to the bank.
It seems to be an interesting approach, but I don't think this is the whole picture.
I am thinking of two situations where I am wondering how that would work:
* small niched vs a big player that is present and known on the whole market
* small business "competing" with another small startup for the same market (eg posterous vs tumblr)