Sounds like a tough position to be in. I'm not sure that outright ignoring your major competitor is such a great idea. You could perhaps use them to differentia

Sounds like a tough position to be in. I'm not sure that outright ignoring your major competitor is such a great idea. You could perhaps use them to differentiate yourself in the eyes of your customers? For example I'm currently working on a language learning app that will be a direct competitor to (what once was) smart.fm. When I discovered their app (a long way into my project) I was at a loss because they have millions in funding and an army of developers. I realized that their approach to language learning is prescriptive, i.e. they decide what you should learn. To differentiate myself from them, I'd have to go for the opposite approach, in other words, provide a much more exploratory experience for my users. There are a number of other fights I could have picked, but this is something that my users wanted and an easy way to set myself apart from my big hulking competitor. Is there some fight along these lines that you can pick with them? Could you perhaps play the less/simpler features card instead of trying to compete on features? Is it that their marketing is just better?