I'm trying to compete in the local market for a keyword, this keyword is very competitive.

I used Backlinkwatch.com to check their backlinks and was a surprise for me to find that they have almost no backlinks except 200 - 300 backlinks from 1 blog or website. Multiple pages linking to the same site.

Do you think backlinks from the same website are so important to make you number 1, 2 or 10 in SERPs ?

How hard can be to defeat this guys with 300 backlinks from the same blog/website. ?

Or... Backlinkwatch is missing something ?

Note: Backlinks to the websites are not in english.