What does the extender strategy focus on?

The extender strategy primarily focuses on leveraging home-grown competencies abroad. This approach emphasizes utilizing a firm’s existing strengths, skills, and resources in international markets to enhance competitiveness and drive growth. By capitalizing on what they do best, businesses can expand their reach and establish themselves in new and diverse markets without the need to significantly alter their core offerings or operational frameworks.

The extender strategy is particularly advantageous as it allows companies to build on their established expertise while adapting to the nuances of foreign markets. This can lead to greater efficiency, as the company often retains familiarity with its products and services while seeking to expand its international presence. This is different from merely building partnerships or solely targeting local markets, which do not encapsulate the extensive potential of utilizing existing competencies in a broader context. Additionally, while reducing operational costs can be a component of international strategy, it is not the central focus of the extender strategy, which is grounded in the expansion of internal capabilities globally.