Also, for most viable products the market is almost always large enough that if you do your marketing and sales correctly and persistently, you can succeed even in competitive marketplaces.
Can the differentiate be in terms of pricing? For example if the competitor is charging say 80$ per month, what if my product charges say 10$ per month?
however there are many factors to consider before going that path
* Low price start will be barrier for any future price changes or re-assesment.
* There is quality perception attached to price so it impacts brand perception.
* Even with price differentiation quality is something cant be compromised (in most of cases)