How to understand competition in seo?
 

You have to know the components that you have to look after if you are going to perform SEO competition analysis. You should take note of these qualities of a website:

Domain Age
Page Rank
Page Backlinks
Domain Backlinks
Government or Educational Backlinks
DMOZ Listing
Yahoo! Listing

What I usually do is to search in Google my preferred keyword. Then take note of the top 10 results. This will be my main competitors. After that I check each website and look for data that are present on the list. Like for example domain age or The age of your competitor's domain. This relies solely on how long their website have been in existence--the older, the better. Or how much the page backlinks are or the number of links pointing to a web-page from outside of the website. Note that this is one link that points to one web page and so on.

If you are a newbie, I suggest you use Market Samurai to aid in in this. Market Samurai will return to you all the data above and you do not have to search for them at all. You just have to look at the values to see if you can dominate that keyword.

Re:
 

Definitely there is taut competition in SEO. The competition is between the businesses and for getting the best rank on search engine they take help of SEO, which is one of the best and effective internet marketing strategy.

.gov and .edu back links creation is outdated now. Domain extensions do not effect seo. Just quality matter now a days.