In many ways, starting a business that already has competitors in the market can actually be an advantage. That is why businesses tend to cluster together.
Where is a good place to start a new gas station? On a corner that already has three gas stations. People already go to that location to buy their gas. Where is a good place to start a restaurant? In an area with other restaurants, where people are already going when they want to dine out.
By pursuing a strategy of going into an existing market, your goal is do things better, faster or cheaper. So being visible with the competition so the market can see that you offer advantages helps bring in customers.
What do you think?