How to deal with competition in startup ideas?
When coming up with startup ideas, what do you guys do when an idea you have has already been built by someone else. It's almost impossible to think of a completely new idea so with this competition, how do you know if you should pursue it further or if the competition is more likely to just beat you?
For example, I was thinking about creating a dev tool which is largely an LLM that understands your screen and recent tasks already, so that you don't have to provide the context to your agent every time. Instead they already know what's happening and what you're working on. Upon doing more research, i found a company called "littlebird" which has ~40 employees, passed an initial seed round, and is already a pretty established app which does something similar.
For cases like this, how do you know if you should just move on, or find a wedge within the competition?