One,get a top face. I can't stress that enough. The only company to survive for the last 35 years in the United States in the WWE. Why? Because they always have a top guy. A wrestling company is basically a television show. What does every television show have? A central character, a character the show is built around. Right now, John Cena is the central character and the show is built around him. Before it was Stone Cold, before that it was Hulk Hogan. All three of those men were the faces and vocal points of their respective era's in the company.
Now, what does TNA do? The essentially have a new TNA Champion every few months. They push different people every few months into the main event scene. They have no central character, there's nobody holding the show together. It's just a bunch of guys wrestling. I understand he's not reliable, but if there's a guy you could push as a top face, it's Jeff Hardy. He's charismatic, a good wrestler, and is over. He was incredibly over in WWE, and they gave him the WWE Championship because he was so over.
Second, if they want to compete with WWE, go PG. Go kid friendly, start to have more kid-friendly segments and wrestlers. The ONLY way you can compete with your competition if if you are like you competition. WWE didn't stay kid-friendly during the late 90's, they didn't continue with the "good guys vs. bad guys" mentality. They went edgy and controversial, to compete with the more edgy WCW. And it was successful for WWE and proved to be the best move their could have done at the time. WWE didn't stay PG and gloat about how they have a better roster, or how they feel they have a better product. They went all out and competed with WCW with the WCW's own formula of stables and "bad-asses".
WWE's fan base consist of mostly kids. Try and take the kids away from WWE, make them have a different company to watch. Maybe they'll get pulled into TNA, who knows? WWE right now is essentially The Muppets Show, while TNA is Sons of Anarchy. I'm sorry, but kids aren't going to interested in a biker gang with masks. In order for TNA to successfully compete, they have to be more like Sesame Street.
I agree with needing a main central character to revolve around. Doesn't necessarily have to be a face, though. Ric Flair was THE man in the NWA/WCW for many years as a heel. Austin Aries, Bobby Roode, possibly a heel Mister Anderson could fill that role. Roode did quite well sometime back, so it can be done.
Now, the one thing that will not help TNA compete with WWE is try to be exactly like them. During the Attitude Era, Vince went WAY out of his way to make sure his product was NOTHING like WCW. The Monday Night Wars were all about clear-cut choices, one or the other. When Vince Russo took over booking in WCW and tried to make it like the WWF, it didn't work because people knew that the real product was with Vince as far as Attitude.
There's a lot of talent on the roster that can work, but there needs to be good writing and booking. Look at all the people that moan and bitch about WWE's PG style right now. If TNA was doing things right, those fans would come over as they would get the edgy product they want to see.