To outrank competitor, you need a higher ad rank.
Ad rank = Quality Score (QS) x your bid
1. If your QS is average or below average, you need to increase your QS:
a) Write better ads, use ad extension, split test to increase CTR
b) Optimize your ad group, ads, keywords to improve relevancy
c) Increase landing page experience by reducing bounce rate, tighter keyword group, add negative keywords, improve landing page loading speed
2. If you have higher ROAS, you can increase your bid to outrank your competitor. To increase your ROAS:
a) Track & optimize your landing page, sales funnel
b) First thing to split test is your hero section, the first thing people see when visit your website (above the fold content)
c) You should ask offer manager to increase your commission if you can bring in some sales
3. First position is not always most profitable position. You may get more sales, but your cost will skyrocket. Use manual bidding to explore different ad position, you will find a optimum position with positive ROAS.
Remember, you want to maximize your profit, not maximize your sales.