The larger the company, the less this matters. There are no magic numbers that I can see, but there becomes a point where you're always taking someone else's job.
Here's something to think about - unless you are creating your own company from the bottom up, you are always taking someone else's job. It may have been a job that they did in conjunction with someone else, but it was a job that was done nonetheless. That seems to be universal regardless of the industry.
If someone else is not doing their job well or is not competent, it is the manager's job to find someone to is competent and do the job well. Feel bad all you want, but I've always found that people rise to the level of their competency. When they get beyond it, they tend to float back down to the levels where they can perform well.
As an aside, as a salesmen, I always want to be in exactly this position. If I can find a competitor who isn't doing particularly well, I can generally insert myself there and replace them. It isn't personal; it's business.
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