ENToday a lot of Lithuanian companies face increasing competive presure from national and international rivals due to global economic pressures and the fast pace of scientific and technological change. According to the study, the competitive strategy of vast majority of Lithuanian companies based on lower labour and energy costs. The article analyses the future viability of lower costs based competive strategies of Lithuanian companies taking into account global economic pressure and the processes of integration of Lithuania into EU structures. Advantages and the main obstacles for implementation of innnovations based competive strategies are identified in the article.