One of the fundamental questions in strategic management is how firms achieve and maintain competitive advantage. In today's dynamic and turbulent business environment it is important to understand why some companies are having better results and some not, even though they are in the same industry and market. In this paper processes for achieving and keeping a long-term market and competitive position will be represented relying on existing researches and (chosen) management theories such as

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... industrial organization theory, resource based view, evolutionary theory and dynamic capability theory that will be used in analyzing the specificity of the Red Queen effect and ways of its development. Innovation and imitation will be further considered as the main principle of the Red Queen effect and we will cover their advantage and disadvantage in today's dynamic business environments (first mover or follower), which triggers organizational learning. The empirical research will analyze the effects of company's strategic orientation for innovation or imitation in the Smartphone industry, their market position and success of (popular) companies. Therefore, we will try to identify the Red Queen effect in the Smartphone industry, which is considered as a relatively young and fast growing industry. In the end different limitations of this subject area will be examined and identified, which should help researchers and students in their decision where to steer future research regarding the Red Queen effect. The future research should focus especially on the dynamic smartphone industry, where even today many scientific papers cover this topic and more are expected to do so in the future.