This is a TechCrunch article on how to be successful as a "disruptive" startup...Interesting strategy...I like it a lot. Start out tackling your competitor's least profitable or smallest segment of the business and disrupt it by being successful with lower overhead or by doing it better or whatever...then capture all of the market share for that segment. The competitor will not feel obligated to spend money to hang on to it's least profitable segment, so it gives it up.
Next, you go after it's next smallest/least profitable segment...WASH / RINSE / REPEAT!
Strategy For Startups: The Innovator’s Dilemma | TechCrunch:
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