To give an example, a lot of my friends have been into Magic the Gathering for many years, and I recently tried to get into it myself, but the asymmetric gaps were too large for me to enjoy it -- they had way more knowledge, more cards, had spent more money, and had more time to spend playing outside of work hours, resulting in me getting crushed again and again.
There was two options I could take: 1) Try to catch up on years of accumulated knowledge, or 2) Change tactics, and see if instead I could play a game we all were more similarly matched with. I chose the latter.
In entrepreneurship, I feel like it's no different. For me, fighting a large startup on common ground is a losing game -- they have the money, the manpower, the knowledge, the social proof, and more. As competitive as I am, and as hard as I push, it's not going to be a fair fight to begin with. So instead, it's about me finding a battlefield where the odds change more in my favor -- perhaps something that doesn't scale, something I have innate knowledge in, etc.
Not sure if that lines up perfectly with what PG is saying here, but it's worked well for me.