Factors affecting the development of the rice milling sector in the norte de Santander Department

The objective of the research was to carry out a diagnosis to identify factors that condition the development of the rice milling sector in the Norte de Santander Department. A descriptive study was carried out based on a field design. The competitive factors were evaluated using the Porter's Five Force Model, and an internal and external analysis was carried out to identify the elements that are impacting the sector's development capacity. The obtained results allowed us to identify some shortcomings and also the potential for companies in the rice sector in the Norte de Santander Department. The whole set of competitive factors show that the market of this rice sector requires conditions of efficiency and effectiveness from the participating companies to achieve proper levels of competitiveness. The internal analysis allowed to identify strengths in terms of financial capacity, production capacity and marketing, although it has deficiencies in the human talent management. Regarding the external analysis, important threats were observed derived from the evolution of the supplier market; in terms of customers, an opportunity derived from the growing demand is noticed, although the lack of market reaction to the differentiation of the product may ease the entry of new competitors that offer better prices. Finally, it was determined that the government is generating legal conditions and restrictions that may affect the markets competitiveness. These results allow to establish a base for the formulation of actions, the development of the sector must be supported by an action program that attend to the deficiencies found and also use the competitive advantages of this important sector of the Colombian economy.