The purpose of business is not to defeat a competitor; the purpose of business is to create a customer. When I sit in a meeting and the primary topic is the competitive threat, I know that the company is only becoming more vulnerable. The attention of the C-Suite should be on the customer, not the competitor.
Is it ever appropriate for the C-Suite to think about competitors? Of course, but this conversation must always be disciplined by a more fundamental question: How can I serve my customer better than anyone else?