If you read my previous blog post about price wars, you'll know that one aspect of differentiation I suggested (based on the 'split the market' technique that the vodka market employed) was creating a new design process.
If you're a designer reading this, there's a very good chance that the entirety of your production is done using the Adobe Suite. Maybe Freehand if you're old school. To differentiate in this process, you need to start looking further afield. A classic example is Vault49, who almost always bring hand drawn sketches in to the mix. This differentiates them from the creative masses because they have a clear, identifiable and unique process.
Why do most people stick to software based design? Its easier for the creative directors and studio heads to amend digital artwork, to tinker with it (as they invariably do). Designers know that this will happen and so take steps to make their artwork easy to change. Therefore the studio heads have to enable this process. Give more power to the designers. Base their relationship with the designers on trust.
This is just one positive change that you could implement to differentiate. More ideas to come. Keep 'em peeled.