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Understand what he means by 'competitor'. Uto doesn't have the resources to be a competitor to hololive. She is only one vtuber, unable to make lasting changes in trends (other Nabi children have not found the same success). Yagoo would worry more about agencies. For instance, Luto and Prism. People may laugh at how small Prism is right now, but a CEO like Yagoo remembers where Cover started and how fast things could change in the industry, and Prism just got some good hire with Shiki etc. And of course, the bigger Nijisanji could always find its way back with more good hires.
