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.