Is the domain name of competitor a good choice of keyword?

Bidding on competitor keywords is definitely a good way to get traffic. It converts well because these users are past the research phase and are in the mood to buy.

Yes, it's a great strategy to steal from your competitors. And the best part is Google doesn't mind. Yet, be careful as you can get sued for this by the competitor.

nice idea ... never thought of it *wink

As per Google's updated algorithm, keyword base domain is not a safe practice, it can affect your site traffic and visitors.

If it is trade marked than Google won't allow you to use it. Just now I have searched my competitors name but I don't find any other ads like what you suggested. I don't think this strategy work. Still I haven't tried so I am not 100% sure.

of course this will help to get more traffic rather than other names , the robot will directly hit your urls too when it compare the keywords

In general, I've found that using a competitor's domain name yields poor results. There's two reasons for that.

One is that those who type the domain into the search engine, don't seem to know how to use browsers. This happened just last week with my 16-year-old son. I told him to go to a site "xyz.com" and he used Google and typed it in. Tried to explain it was inefficient and silly in a way, just type the domain in the browser's bar but as with most kids, I was ignored and got "let me do it my way".

Invariably, the actual site will show up first in the listings which is what the user was looking for. The vast majority of those doing this will have no interest in another site. Therefore, your ad gets hardly any clicks. The percentage of those "searching" this way is small so the returns are small even if you get clicks and someone get conversions. They are not even searching for products (typically) and it's hard to get the keyword in your ad, if you are even allowed, thus making it hard to get a good quality score. Granted, in this case QS is probably less of an issue.

So for all those reason, not something I do myself and way down the list.

it can be if you target it right

Yes, this is the great way to access more traffic and Google also appreciate your work if you are use Organic SEO tactics.