Competition between small guys

It is a common knowledge that when you are competing with the big boys, you will have an advantage in “speed/fastness” of either customer service or feature release.

But what if the competitors are also other indies or a relatively small startup with the same “ability”? As well as excellent execution in most areas with no real/obvious weak points? Would you guys still push for the launch and don’t care about them or pivot to a new direction?

This is something that has been discouraging me a little bit from going all in with any of the ideas. I do think competitions are good but if they are too good then I don’t really see any real way to beat them right now.

You could say, lower your prices but I believe lowering the price is just a way to relieve the symptoms not cure the main problem. Not to mention now you will be outbidded when bidding for advertisements.

Anyway, what would you do in this kind of situation?