If your business is fighting a losing battle against one or more superior competitors, the solution is: Stop competing on their terms. Don’t fight harder, change the rules.
This is a great article and a must-read for anyone facing competition.
Incidentally, the article quotes the always readable Malcolm Gladwell, whose article in the New Yorker entitled “How David Beats Goliath” is classic Gladwell: He takes topics I normally don’t care about and makes them very engaging. It’s also worth reading!