One book I read actually put it a different way: Lots of competition is actually a good thing.
If you come to a market that's "wide open" with nobody else there, there are two possibilities:
1. You're the first person to ever think of that idea
2. Lots of other people have had the same idea, but failed to make it work.
I mean, #1 is possible -- somebody has got to be first -- but #2 is much more likely.
By contrast, if you're in a space with lots of competitors, that demonstrates that the business idea is sustainable: if the market can support N sustainable companies, is can probably sustain N+1, particularly if you bring something new to the table.
If you come to a market that's "wide open" with nobody else there, there are two possibilities:
1. You're the first person to ever think of that idea
2. Lots of other people have had the same idea, but failed to make it work.
I mean, #1 is possible -- somebody has got to be first -- but #2 is much more likely.
By contrast, if you're in a space with lots of competitors, that demonstrates that the business idea is sustainable: if the market can support N sustainable companies, is can probably sustain N+1, particularly if you bring something new to the table.