duiker101 yes..that's the general idea. But the mobile app world is so chaotic these days, that it takes a long time to be found. WOM is a good strategy, but focussing on finding the competitors weakness might take away your focus away from the product itself ??
You should not try to focus away from the product, if that is what you really want, but each time someone says "I use x but I really wished it had y feature" it can be great opportunity to show yourself off and acquire a new client if your product is good enough. You are right anyway, the App scene is a mess and it's hard to reach and stay on top, but not impossible. A great example can be the reddit applications, there are many but as they add new features people change opinion and change when they see more and more people switch.