In able to eliminate this threat, Wal-Mart had to come up with a strategy that would put them back on the German market map. Wal-Mart main strategy in dealing with such kind of problems has always been to use its major competitive-device; this is the price-based competition (Fernie & Arnold, 2002).
The company applies this strategy through its everyday low prices across the various categories of products that it deals with. Thus, by bringing the prices for their products a notch, this company was able to capture the markets which at some point had proved to be somewhat elusive. They gained the customer’s favor by doing so and within a short time the company became the customer’s favorite giving them that advantage that they sought so hard.