Simulation model applied to food industry

Contemporary enterprise strategy has to be based on enterprise´s system supporting enterprise´s innovation potential (enterprise innovation infrastructure). The foundations of entrepreneurship should follow new philosophy: “Innovate or die”. The aim of the paper is to point out important links between enterprise´s innovation potential and its competitiveness simulated on Vensim software. Mathematical instruments were used for creation of Innovative Management model, which displays how firms gain a competitive advantage on a market due to innovation. The developed model is applied in a food industry, especially freezing firms and capturing their basic characteristics.