Competitive Strategic Approach of the Productive Chain: Agro-Food Sector in El Salvador

Abstract

Every company looks for generating and consolidating a business strategy that permits achieving a competitive advantage in the field where it participates, in which sometimes dynamic and changing conditions exist that make the course the company should follow turbulent in order to consolidate its strategic approach and achieve a sustainable and durable competitive advantage. All of this is the product of the organizational capacity of achieving that a significant number of customers prefer their goods and services over those offered by competing companies in the market.

Companies always need other partner and collaborating organizations in order to establish business relations, pursuing common objectives and collaborating among them to facilitate production, distribution, and commercialization of goods in the markets in which they participate. These companies form what is known as “Productive Chains,” which go from the primary stages to the final production stages, including the elaboration of basic raw materials and transforming them into final products and services, in order to satisfy the needs of customers and consumers in the markets.

The Agro-Industrial sector of El Salvador is formed by companies that make an important contribution to the national GDP, such as sugar companies and basic grain producers, among other processed food products. The productive chains belonging to the agro-industrial sector in El Salvador were studied, their contribution to the national economy was identified, and one of the most representative was selected to study the competitive strategic approach it has adopted or should adopt to compete in the local and international market.