If there are too many competitors of a particular product in the market, then it is feasible to launch a new product?

If a firm wants to introduce a new product it is essential to invest well in the development of the product and the promotion of it. This may mean that a lot of work is put into the product before it's launched. Once the product is on the market it may be necessary to periodically inject new life into it. This can be done in several ways including: product improvement, extending the product range, improved promotion etc.

WELL DEPENDS ON THE MARKET SIZE ,,, MARKET GROWTH ,,, PRODUCT LINE GROWTH ,,,, TOTAL SHARE OF THE PARTICULAR PRODUCT IN THE MARKET ,,,,, BRAND LEADER SHARE ,,, ETC ,,,,,,,,,,,,, IF YOU ARE CONFIDENT ON YOUR MARKETING/SALES TEAM TO MAKE A DIFFERENCE THEN ITS ALWAYS FINE TO TAKE THE SHARE FROM THE CAKE ,,,,,,, OTHERWISE FIND ANOTHER SAFE WAY TO GO============== GOOD DAY

Unless there is a differentiator , Significant portion of market would not pay heed . The differentiator can be price , product feature , after sales service etc .. 

Too many competitors may indicate a low-entry market and at the same time warn of possible market saturation, depending on market-size and existent offerings. Your market research should indicate whether & why the market is as such. Does "low-entry" in such case also mean "quick exist"? Can your product/service beat saturation and re-create need or add new value.

Do the specifications of your product qualify for it to compete or will it be easily out-classed and outcast? You have got to have a very unique selling point to start with and conduct thorough market research, I guess, to answer such questions. 

agree with the answers of them

You should make the feasibilty study before you adopt the production of the product or adding the product to your portfolio not before launching. Your feasibilty study should give you a clear picture of the competition at the moment of launching, the expected price, the expected market share and expected profit. If these figures are in line with the company's vision, you can go a head with your marketing activities.