There will always be competition. There are probably half a dozen other companies doing similar things that you just don't know about yet. Most of the really successful companies that I can think of weren't the first ones on the market.

Like others have said, learn from them. Figure out some need that they're not addressing and sure up that niche and try to grow from there. That may actually lead you to a point where you're not going head-on against them, and even if it doesn't it'll give you some runway before you're really going one-on-one.