yes why not. If the blogger blog is not an authority. If it is a simple blog than any website can compete with it easily.
Umm.. I am not sure. Even if you don't have a dedicated domain and only have a subdomain like at blogger or wordpress you can compete with a blogger you has a dedicated domain etc. The only thing that matters is quality of the content and how you present it.
Blogger or website it;s not matter the thing is Unique and relevent content and quality of back link you can able to build for your blog/website
you can use custom domain name free on blogspot and it can outrank any site if worked properly on it.
Yes we can compete the blog with websites. Using blogs we can update the latest information and reach users quickly. if we apply same concept in our website it is able to produce brand name also besides with information transmission. But this needs a proper strategy to attain existing users and attract new users as well.
It doesn't matter whether it is a blog or a static website. The point is once again on-page optimization and also links with good anchor texts. A blog has a distinct advantage over static content because Google always loves fresh content.