People always ask what it takes to be a champion at something. The difference is in the mind. Failure will test this. Do you quit during the hard times or do you feel the need to push harder.
I was never happy when I lost. The difference between my peers and I was that it had nothing to do with the competition. As an athlete you had to walk the path. Shake his hand and honestly feel that they did a good job. Because they did. Inside the feeling is not one of wishing they failed, but rather a feeling of next time it will be different. At that point do you have the grit to work harder than the next person so ensure that it will be different next time.
In my experience competition brought out the best of myself and my fellow competitors. There are very few people in this world that can bring out true improvement. Surround yourself with these people. It will benefit everyone involved.