Let's be realistic here - worst case that you can do anything about: it's possible the other side just hopelessly outmatches you in some area, and likely always will (they've better programmers, they're allowed to use more powerful software, they've better connections, they have enough money to put you out of business by undercutting) - and 'maybe you don't deserve to exist' is not a good answer to 'perhaps we should focus somewhere where we've a competitive advantage.' Maybe you'd be really good at something else, or maybe not - but you've the resources there and you may as well make a go of it if you look to be totally screwed otherwise.

You need to have some realistic assessment of how badly you're losing. Gungho "Yay effort!" is not a worthwhile risk analysis.