Which strategy involves leveraging local assets where multinational enterprises (MNEs) are weak?

The defender strategy is the approach that focuses on leveraging local assets and strengths in the regions where multinational enterprises (MNEs) might not be as competitive or well-established. This strategy emphasizes the importance of local resources, knowledge, and capabilities to maintain a competitive advantage in the local market. By prioritizing local assets, businesses can effectively counteract any disadvantages they have in that market compared to large, established multinational competitors.

The defender strategy allows MNEs to create a strong local presence by capitalizing on specific local knowledge, relationships, or resources that can be used to protect and enhance their position in the market. This approach is particularly valuable in regions where MNEs may struggle against local competitors who are more familiar with the market dynamics.

This strategy aligns well with the concept of focusing on what an organization does best in a local context while developing ways to compete effectively against stronger external players. By recognizing and harnessing local strengths, MNEs can improve their competitiveness in markets where they initially face challenges.