Good lessons from Kate:
First, build a product that works exactly as well as the competitor, but price it less. Or, in the alternative, build a product that is better than the top competitor and price it the same.
Either way, there needs to be an incentive for customers to make the switch. Either less money for the same thing, or the same money for more. Can you see why it remains difficult for the like of Samsung and Microsoft and other competitors to unseat Apple?