Let's go back to the Niche again.
If the competitor has the same work as yours, same price or same everything. What will you do?
Find something which could make yours better. Right?
Example: Mang Inasal is a famous restaurant here in the Philippines. Their niche a long time ago which made them famous was Unlimited Rice. Jollibee, the top and the most famous restaurant in the Philippines feared that Mang Inasal would be better than them. So, they decided to buy Mang Inasal. Now, Mang Inasal is very expensive and most of my friends don't eat there. Maybe because they removed the unli rice thing.
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