Finding your sweet spot of customer's needs, competitive differenciation and your company's capabilities is great. Every business should strive to do that.
But that is just a starter, a warm-up for the real thing: the lead/marke.
As a lead/marke you do not necessarily research for your customer's needs, but stay ahead of known needs by developing solutions to unsolved problems or even unknown sensations. You develop new needs.
As a lead/marke you do not necessarily stay within your own capabilities, because they do limit your possibilities. If you stay within, you cannot really grow.
As a lead/marke you do not necessarily benchmark vs. existing competition, because you have none / your competitive field changes with every new launch.
Does that make sense? If you think in Informal Markets it surely does.
Informal Markets are derived from people's new independence, individuality and impatience. Informal Markets are not the artificial markets / definitions of GfK or Nielsen. They're derived and 'extrapolated' from real human thinking and acting.
While a traditional market definition would read 'very small cars', Informal Markets in their first quadrant would eg. state 'very small car, bus, tram, subway, motorbike, bike, scooter, motor scooter, park & ride, etc'.
But that is a different story.
I like the sweet spot. It communicates very fast. Start with it! It is a great start for differenciation – for disruption you will have to becoem a lead/marke!