Its only used on dogs that can be handstripped ie terriers and cockers. I use it in conjunction with hand stripping. It removes the blown coat or fluffy top coat when it is ready to come out, it doesn't take out any other coat. I find it useful for the tops of heads, backs and top leg feather areas.
It works really well on some dogs and not so good on others.
Yes, you hold it firmly and drag it over the coat in the direction of growth. You don't press hard or dig in or you will hurt the dog. Its not a miracle worker, and is no good it the coat is knotty.
For what they cost, it is worth a try to see if it works on your dogs coat - or ask a groomer to give it a try for you. I often get people popping up from the pet shop below to ask what will work on their dogs coats.