This is fine, except then your teams interactions with another team might as well be interactions with a competing company. This produces some behavior that can

This is fine, except then your teams interactions with another team might as well be interactions with a competing company. This produces some behavior that can be difficult for outsiders (customers, the CEO, etc) to understand. So it works well as long as your teams don't interact. And if they don't interact, why do you have a 2000 person company?