I am going to quote five ideas of my favorite book: Rework
Look at all those commercials about the next "iPhone killer". It is stupid. They are all essentially wrong. You cannot win a war against the one that set the rules of war. If you focus on overcoming a specific product, you will lose, because your product is lacking a soul.
The iPhone is successful because it perfectly embodies an idea. The idea that style plus usability are the most important.
Find a soul for your product. Embody an idea. You don't need features. You need to state your intention to create something useful.
The features of your product are a result of that spirit.
Pour yourself into your product
If your product embody an idea and the customers like that idea you are going to find that your competition is copying you.
And that's fine.
Who cares? The will never copy your spirit. Nike is Nike, and they are great not because they fabricate shoes full of features, but because they pour their sportsmanship spirit in their shoes.
Pick a fight
It is part of having an spirit. What is the reason you are building that product? You want to do things simpler for the user? You love italian pizza and want to share that love with the rest of the world?
That's your fight. That's your identity.
Underdo your competition
Someone said that you must have more features than the product your are competing with.
What was the result of the Cold War? Who won?
Nobody. You don't beat an enemy by having the biggest features, millions of services and a myriad of options.
You win by doing something really specific so fucking good that it is even impossible to do it better.
You cannot be defeated if you strike at simplicity. And simplicity comes from focusing on little features that makes a great difference.
Find that 3 features and make me proud of using your product.
Focus on you instead of they
And this is the corollary.
At the end of the day, it is you the only one that matters. You are focusing yourself on designing your shining idea and making a very simple implementation that embodies your spirit.
Who cares what the other do? They are not really your competition.
You are unique.