Creating value means being able to provide products and services that buyers value more highly than it costs to make them. A good measure of value is the value gap – the difference between what a buyer is willing to pay and your cost of provision. The measure of unique value is the amount by which your value gap exceeds those of your competitors.
Strategic extension is the act of taking your unique value system and extending it to cover more buyers or similar products, or both.
This idea of concentrating to grow or to create value works because value creation may not even be noticed on too large a base.