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If your competitors jumped off cliffs, would you follow them? Of course not.
Obviously examine where they get links from and how, but don't just do what they do. Make sure your site is providing something unique compared to your competitors - something that will make you stick out above them. Analyzing their activities can certainly give you an insight in possibly what to do, but don't do any stupid link exchanges, or use blackhat/underhand methods to promote your site.
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