Yes, but not initially. And pitching your 1% market share plan in a big market is a recipe for failure. (#21)
What matters is that they define the market differently and design solutions that get a "job" done better and more completely than existing solutions. More often than not, disruptive solutions will attack the problem completely differently, at a higher order of value, while having fewer visible features.
Think Spotify vs iPod vs component stereo systems.