> if they were to improve productivity of 10% of the economy by 10% and capture a third of that value for themselves, that would be more than enough
This is “if we get 1% of the market” logic.
This is “if we get 1% of the market” logic.
Of course, you must also make a convincing case for getting to that 1%.
Inherently, no. In practice, it's riddled with biases deep enough [1] to make it an informal fallacy.
"The competition in a large market, such as CRM software, is very tough," and "there are power laws which mean that you have to rank surprisingly high to get 1% of a market" [2]. Strategically, it ignores the necessity of establishing a beachhead in a small market, where "a small software company" has "a much better chance of getting a decent sized chunk."