Science – Future of Lithuania / Mokslas – Lietuvos Ateitis, Vol 1, No 3 (2009)

Market Structure in the Context of Developing Competitive Strategy

Algirdas Krivka
Romualdas Ginevičius


The abstract deals with the application of positioning strategies under the conditions of classical market structures. It is discovered that the assumptions of pure competition leave no space for M. Porter’s generic cost leadership and differentiation strategies to be applied. The enterprise’s actions, influencing five competitive forces and implementing generic strategies, are reasonable under the conditions of imperfect competition market structures. The game theory models, applied to oligopoly, indicate the close interaction of enterprises and interdependence of their strategic decisions: cost reduction and differentiation strategies not only increase the profit of the enterprise, implementing the strategy, but by affecting market price and residual demand decrease the competitor’s profit.

Article in Lithuanian

Article in: English

Article published: 2011-04-11

Keyword(s): market structure; pure competition; monopoly; monopolistic competition; oligopoly; generic strategy

DOI: 10.3846/148

Full Text: PDF pdf

Science – Future of Lithuania / Mokslas – Lietuvos Ateitis ISSN 2029-2341, eISSN 2029-2252
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 License.