Onur Cobanli explains:
Competitors stimulate and increase the overall demand in your industry by either creating superior products or by creating equally good products with lower prices. When the products are better, more people demand them. When products cost less, more people buy them. The competition itself as a mechanism is always aimed at capturing more market value, therefore the competitive market mechanism is always expected to either result in superior products or to result in lower cost products, which can all together may increase the total demand in the industry. But it will not benefit you; you will lose if your competitors innovate and you do not; to tap into the increased demand, you need to compete even better.