Competitive Advantages and Strategies of the Brown Sugar Industry in Purbalingga

The objectives of this study were a) to determine the competitive advantage of the brown sugar industry based in the sub-district Mrebet, Purbalingga; b) to identify internal factors of the environment (strengths-weaknesses) and external factors (opportunities– threats) that affect the industry’s empowerment and competitive advantage; and c) to find the best strategy for its empowerment and competitive advantage. This research was conducted in the sub-district of Mrebet, which was chosen using purposive sampling because of its potency of local resources and the presence of the brown sugar industry within it. This was descriptive quantitative and qualitative research. The research sample was determined purposively, and consisted of 20 households who were considered to be representative. The formulation of strategies for empowerment and competitive advantage of the brown sugar industry were analyzed using SWOT analysis. The results showed that the average unit cost of competitiveness measured by the indicator of domestic price was 0.46. This means, to produce 1 kg of brown sugar, the farmer spends 46% of its selling price. The strategy to be applied for the brown sugar industry in the sub-district is the Aggressive Strategy. Keywords: advantage, brown sugar, competitive, strategy