Of course there is. And too often do I hear this from many of the design and freelancer blogs out there.

1. Doing Business as a Designer:
But There’s Too Much Competition!
(Slide-u-mentary Version - made in google docs)
By Jae Xavier of KnowledgeCity.com
Blog: jaexavier.wordpress.com
Twitter: twitter.com/jaexavier

2. There's Too Much?
Of course there is.
And too often do I hear this from many of the design and
freelancer blogs out there.

3. The General Market
If you are always aiming for the “general market” where
there is a lot of “opportunity”, guess what? There are a lot of
“generalist” designers and chances are most of them are
freelancers also trying to cash in.
This contributes to the “price war” most designers complain
about and the only one who wins is the customer.

4. For Example...
I’m on my way to the stadium to watch a soccer game. I know
there’s going to be traffic on the freeways and especially in
downtown. Take the back roads? Some roads have been closed
off due to the event but most have traffic anyway.
What’s the best thing to do? Take the city rail into downtown.
I save an hour (win) and don’t have to pay $20 for parking
(win). I already won two times. If my team wins, I win three
times!

5. Application
Same thing applies in business.
When you get to know a target market very well, you can get
more business and faster. It won’t be competitor free but
there is far less of it.

6. Want to know more?
Resources:
KnowledgeCity.com: Introduction to Core Marketing Concepts
Related Articles:
Doing Business as a Designer: Getting Started
Doing Business as a Designer: Defining Your Competitive
Advantage
Doing Business as a Designer: The Price Wars