Since the 1990s, immense interest has arisen towards the concept of regional clusters and competitiveness. Both these concepts are directly related to economic growth and development. This study aims at analyzing the relationship between sports goods cluster of Jalandhar, a city in Punjab state of India and regional competitiveness. For the achievement of the objective, preconditions and conditions for the competitiveness of sports goods cluster have been determined, various factors determining the competitiveness have been identified using prior literature, and a theoretical model is proposed which helps in improving the competitiveness of the cluster. The analysis shows that firms located in the cluster can improve their competitiveness due to the presence of a number of factors which are available to the firms that are part of the cluster. The presence of factors of production, demanding and sophisticated customers, active rivalry and government motivate the firms to perform better. Moreover, local universities and research institutes provide educated and trained workforce. The sharing of information and resources ensures improved performance and innovation.