[xirium]

From the article: "All we have to do is get 1% of the market."

There's two fallacies in this argument. The first is that getting 1% is sufficient. The second that getting 1% is possible. I've seen the first technique working but it isn't sustainable. In the UK, there was an early cable channel and I believe its strategy was to be visually arresting and therefore catch 1% of channel flippers. This is viable when you have 30 channels, but it isn't viable when you have 500 channels.

The second fallacy is the Chinese Sock Syndrome. If you could get 1% of the Chinese sock market then you'd have a huge turnover. Unfortunately, it ignores the possibility that the natives can service their own market at less cost. This is probably how Pets.Com failed.