There's a constant push to differentiate in today's competitive climate. Companies often invest in new products, services, and technologies to help shrink the divide and get a leg up on the competition. It's a constant struggle and many organizations even create "innovation teams" and programs to discover that next "big idea".
Most organizations focus on what might be considered the "low hanging fruit". They examine what competitors are doing and work to create their own flavor of those products or services. They often believe it's a safe bet and that they'll simply "do it better" than their competitor, and the revenue will follow. Alternatively, companies will look to differentiate through a unique marketing campaign with a catchy slogan and creative promotions. Or they will conduct a series of internal discussions to identify what they believe customers want and select the most cost-conscious, easily implementable idea that pops out.
However, none of these things are real differentiation.