Final answer:
Winchester Rugs is employing a geographic expansion strategy by operating "Rugsonline.com", allowing them to reach a wider customer base outside their local region.
Step-by-step explanation:
Winchester Rugs operating a website called "Rugsonline.com" is most likely using a strategy of geographic expansion. This strategy involves expanding the business's market presence across different regions or countries via the internet. Winchester Rugs is utilizing digital platforms to reach a broader customer base beyond their traditional physical location. This allows customers from various geographical locations to access and purchase their products, thus expanding the rug company's market and increasing potential sales.