Optimizing Knowledge-Driven Competition: Analyzing Product Differentiation in the Physical Education and Sports Training Oligopoly Market Using the Hotelling Model

Huijun Jiang and Xinke Leng ()
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Huijun Jiang: Huzhou University
Xinke Leng: Hunan University

Journal of the Knowledge Economy, 2025, vol. 16, issue 2, No 6, 5945-5966

Abstract: Abstract In contemporary society, there is a growing demand for sports, physical education, and sports training services, reflecting an increasing awareness of their benefits beyond physical fitness. This surge in demand has led to a diversification of services within the sports and fitness sector, ranging from wellness programs to specialized sports training regimens. To stand out in this competitive landscape, companies in the sports industry are turning to service innovation, including the incorporation of cutting-edge training techniques and advanced technology for coaching and performance monitoring. This research focuses on the intricate interplay between product differentiation and pricing strategies in the sports service market, particularly in lower-tier cities in China. Utilizing the Hotelling model, we investigate the impact of product differentiation on the revenues of sports service companies. We also delve into the game theory model of price competition within a duopoly market, exploring the dynamics of industrial competition and strategy sequencing. Our findings reveal that adaptability in pricing strategy is crucial in response to the ever-evolving market dynamics. Furthermore, the study emphasizes the significance of product differentiation in influencing market structure and pricing dynamics. It underscores the need for tailored approaches to strategy within the sports education and training industry. This research contributes to our understanding of the sports service market and offers practical insights for businesses and regulatory bodies. It highlights strategies for enhancing product differentiation, spatial considerations in location selection, and the importance of clear market regulations. Overall, it provides valuable tools to navigate the complexities of the sports service market in China’s lower-tier cities and offers directions for future research in knowledge-based economies.

Keywords: Product differentiation; Pricing strategies; Sports education; Market dynamics; Hotelling model; Oligopoly (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s13132-024-01799-y

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