Business strategies of companies and local production systems in Bulgarian dairy industry

Abstract

The following paper examines the issues related to product-market business strategies. They are considered in the case of nonbusiness organizations and local production systems (LPS), which operate in the sector of milk and dairy products in Bulgaria. For the purpose of estimating the intensity of competition the number of competitors was computated, including these which are of paramount importance for the industry. The paper outlines some basic types of LPS within the industry. It also disscusses the assertion that a presence of enhanced vertical integration is identified within the sector, where the producers of milk and dairy products have a leading role. On this basis, the product market business strategies for the development of manufacturing companies and for the LPS as a whole appear to play a key role in the sector.