Competitiveness of the Sugarcane Cluster in Goianesia-GO, Brazil

The present study aims to analyze the competitiveness of the chain of sugarcane cluster that is located in Goianesia (Goiás state, Brazil) and in nearby municipalities like Barro Alto, Santa Rita and Vila Propicio. It was used Michael Porter’s Diamond of Competitiveness, which lets to study the competitiveness of a company, cluster or country, by four factors- demand conditions, factor conditions, context for firm strategy and rivalry and related and supporting industries. To build the Diamond of Competitiveness was used secondary and primary information, where the latter was collected by interviewing the key actors inside and outside the Jalles Machado, central company of the cluster analyzed. In terms of results they were found several interesting aspects that affect (positively and negatively) competitiveness of the cluster. It was identified, for instance, how investment in research and development, as well as the adoption of technology, are key for the central company of the cluster to facing the physical constraints of the Goianesian soil, and how this contribute to the cluster competitiveness against other actors that are in better conditions. In addition, the cooperation between cluster’s stakeholders - which makes the central company and its partners identify together the cluster's weaknesses and work on a solution- was identified as a key factor in creating competitive advantage. The paper presents the factors that affect both positively and negatively the competitiveness of Goianésia’s cane sugar cluster, leaving available the necessary inputs for policy makers drawing strategies for improving the competitiveness of this cluster.