The market I am planning to play in is geographically constrained. Because of this there aren’t many competitors at this stage in the game which, initially you would think is a good thing. However this particular market can only support a small number of players, and because there are already established businesses operating and building brand recognition it will make my job as an SEO all that more difficult, but subsequently much more important.
I firmly believe that the defining factor will be the quality of the content provided. The value the customer perceives they are receiving by using one site vs another will ultimately dictate where their brand loyalty lies. Rand covers this quite well in this video.
Something web users are slowly coming to realise is that most markets are flooded with poor quality copies and once you find a site that produces quality content in the area you are interested in you stick with it.