Business case study about choosing one strategy and its implications for a danish supermarket

Originally, the price strategy is very successful in Denmark and Germany, because in this countries who buy in a discounter store thinks that the products offered there are the everyday essentials and they think that there are lowest prices and high quality. On the other hand, in UK low prices are associated with poor quality, that is why people prefers spent a little bit more money buying in stores where they think that the product …

…well-known brand, which are the majority of the companies that supply firms like Tesco. This advantage could be also applied in the Netto's brand products, where Netto can decide easily of changing the supply in case they do not agree in price conditions. Likewise, Netto has to establish an excellent cost control, in order to maintain its competitive advantage of offering low prices. Therefore, the margin charged in the products could be small and competitive