Generolo Jono Žemaičio Lietuvos karo akademija

The demographic decline, economic uncertainty and high unemployment rate allow predicting the exit from the market the weakest privately run HEIs. The aim of the paper is to identify strategies that privately run HEI might pursuit in current high-velocity environment sustaining competitive advantages. Author applied the dynamic capabilities framework as a theoretical foundation and propounded four research questions. Having investigated the stage of Latvian privately run HEI industry consolidation, authors answered the first research question: what should be the cornerstone of a HEI long term strategic plan in current industry consolidation stage? Then authors conducted the survey of students’ opinions among different privately-run Latvian HEIs and answered second research question: what educational philosophies have been adopted by many privately run HEIs: customer or product oriented approach towards students? Next, the research paper identifies the necessity of product oriented approach and determined dynamic capabilities for such strategic move. Finally, authors answered on the forth research question: is it possible to develop and sustain the competitive advantage, pursuing international strategies by exploiting a HEI’s resource and capabilities? The paper has potential to generate a scholar’s discussions and might lead to further research.