Competitive Strategy for Rural Agroindustry Development of Brown Sugar from Sugar Cane (Saka) in Matur Sub-District, Agam District, Sumatra Barat

Abstract

Intensive strategies and alliances are an altervative for business development in rural communities. The purpose of this study is to describe the business of processing sugar cane (saka) and formulating a competitive strategy for processing brown sugar in the Sub-district of Matur, Agam Regency, Sumatra Barat. This study is a literature study based from several research reports and journals relating to the development of sugar cane processing, with the analysis of External Internal Matrix (IE) and Exponential Comparison Method (MPE) to suitable with the competitive strategy. This research shows that the brown sugar processing entrepreneurs are generally small-scale entrepreneurs, with low-scale production with simple and efficient technology, product was marketed in the surrounding area. Competition strategies include: (1) market development, (2) expansion and farming intensification area and processing of products, (3) cooperating with farmers of raw material suppliers, other processing entrepreneurs and traders, (4) strengthening farmer institutions with farmer groups and cooperatives market development. The recommendation of this study is development of social entrepreneurship with the involvement of local governments, universities and local entrepreneurs.