That type of logic is not inherently flawed, is it?

Of course, you must also make a convincing case for getting to that 1%.

> That type of logic is not inherently flawed, is it?

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."

[1] https://www.nature.com/articles/s41599-024-03403-9

[2] https://news.ycombinator.com/item?id=45804756