This research paper delves into the competitive landscape of the Georgian beverage industry, where rivalry is strong and cutthroat. The emphasis of this article is mostly on the importance of market orientation and innovation in determining the success of competitive strategies in this sector. Advancing these perspectives is data from the area's beverage industry, which has seen a surge in development, providing insight towards the obstacles companies experience in keeping up with their competitors. The study employs Structural Equation Modelling (SEM) Smart-PLS with 325 respondents from the beverage industry. By keeping in sight how market orientation and innovation on their own authority yield mediating effects, light can be shed on what matters for a firm to triumph in this demanding industry. The conclusion drawn suggests that companies embracing a realistic market-oriented outlook in their product planning and advertising, combined with centering on novelty, are better placed to stay successful within this fiercely competitive business space.

This study examined the relationships between market orientation, innovation and firm performance. Beverage industry firms operating in Georgia were chosen as the sample. The study employed the partial least squares structural equation modelling (PLS-SEM) path model to test the hypotheses. The research data were obtained from the 319 employees of 18 businesses by using the survey technique form. According to the findings, market orientation and innovation have a significant and positive relationship with firm performance. A significant and positive relationship was also found between market orientation and innovation orientation. Furthermore, it was found that innovation is the significant mediator between market orientation and firm performance. The findings suggest that beverage firms in Georgia strongly perceive themselves as market-oriented and consider innovation as a crucial factor in enhancing their performance and competitive advantage. Therefore, it is recommended that beverage companies invest more in innovation and foster a culture of innovation within their organizations. Collaboration with other businesses, especially technology companies, could also lead to new ideas and innovations. Additionally, since the export of beverage companies in Georgia is on the rise, firms should focus on expanding their markets through exports and potentially collaborate with other businesses in other countries.