In the late 90's my business launched a new product at a trade-show where very few people knew we were bringing our product to market. The strongest player in the industry came over and in an effort to intimidate me told me that my service would not work and the vendors would not participate. He told me that the big guys already have the market locked up, but that he admired me for trying.
Today, he has to route some of his business through the system that he said wouldn't work because some of his core clients dictate this as a requirement.
While heavy competition can be a negative, it can also be a positive. If there is strong competition, there is a marketplace to service. If you are able to provide a better service or product than the established competition, chances are that you have a very good potential to rise to the top fast.
Finding a company that can produce a product or service that answers everybody's need is nearly impossible. We all have our idea on how a product or service should work and that difference is an advantage to the up and comer who spends more time listening to the prospective audience then the established institution does. You are the person that has the time to explore what everybody else does. You can take your wants and needs, add that to what you see other people wanting, and you soon have the potential to become a player in your desired industry.
I hope that you have the top guy in the industry come up and tell you that your idea or product won't work, if he does, you're on the right track, because he's not there to do you a favor.