The East German transition to Market Economy became a selection process for former DDR companies. Most companies did not survive the transition to the market economy. However, some have survived and are able to compete in the market economy after the transition. Studying these companies renders evidence of what is approved by customers in the competitive markets in the global economy. The research into the survival of East German companies provides and insight into companies facing competition in a market economy, and suggests how market forces influences the functioning of enterprises. Six hypotheses have been developed to account for essential reasons why some East German companies have survived, and why and how they are capable of marketing products and services in the competitive market economy.  The transition to market economy has had many consequences to East German companies. The productivity of the former DDR was substantially lower than that of the West. At the time of the reunification, the companies of Eastern Germany were not competitive, due to high production cost. West German wage levels and working conditions, and the West German institutional model called Model Germany, was transferred to Eastern Germany at the time of reunification (Wiesenthal 2003).