The Effects of Government Regulation and Distinctive Capability on the Cost Leadership Strategy to Drive the Business Performance of Minimarket Chain

The minimarket competition in Indonesia is very tight and dominated by the two largest chain, Indomaret Alfamart. This study aims to examine effects of government regulation distinctive capability on cost leadership strategy its implications for business performance chain Indonesia. It based empirical gap, not theoretical gap. variables are relevant competitive advantage sustainability. method explanatory survey, data analyzed quantitatively primary data. unit analysis a Time horizon cross section (one shoot). populations all companies which has same set characteristics amounted 20. design used this Partial Least Square. coverage samples under 100 respondents valid use PLS. results showed that dominantly was influenced ownership supported regulation. Cost most influence directly increasing performance. Government can improve performance, but effect smaller when compared indirect through strategy. findings have management efforts rely development strategy, built adaptation suitable be applied industry because hypercompetitive market structure. In addition, regulations significant impact retail industry's