Abstract
In this study, we were able to theoretically explain the correctness of the management strategy developed by Taiwanese company(RT-Mart) who entered the Chinese market through a game theory analysis based on a two-stage model of spatial competition and price competition. In previous studies, the spatial competition model has not been enough to consider the price component, but only describes the market with poor price competition. Furthermore, it could not be applied in industries with intense spatial and price competition such as retail markets. The construction of our two-stage game model of spatial competition and price competition provided a rationale for explaining both the location competition and the price competition to explain the intense business strategy of the industry.
