Reacting well to competition requires critical analysis of your own product and its shortcomings, and a complete, open-minded understanding of why people might choose your competitors.
They’re not fanboys. They’re not brainwashed by “marketing”. Your competitors’ customers aren’t passing on your product because they’re stupid or irrational.
They’re choosing your competitors for good reasons, and denying the existence of such good reasons will only ensure that your product never overcomes them.
One of the reasons Apple has been able to quickly dominate so many markets is that their competitors have largely reacted defensively.