NEED BUSINESS ADVICE!!! What should I sell?

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I have just started a small business (I opened my store 2 weeks ago). I am renting out a small commercial space in which I placed a glass display shelf and a wooden shelf with drawers. Since my location is near 2 schools, I opted to sell school and office supplies. With a minimal capital, I bought supplies that I believe are the basic school necessities such as paper (bond, book, Oslo, art paper)pens, glue, folders, envelopes, crayons, scissors, sharpeners, pencils, notebooks, paper clips, fasteners and the like. I also got a digital photocopier so I can offer photocopying services. My problem is, I have a competitor who is already established and is located almost exactly in front of my store! It is not basically a school-and-office supplies store but they have an internet cafe and they also sell school supplies and even food & refreshments. I want to stick to my plan on specializing on selling school and office supplies so as not to look like a "business with an identity crisis." So, what do you suggest that I do to attract customers (students most especially)? Is there anything else I should sell? What is a good marketing strategy?