Final answer:
The strategy that focuses on existing markets and products, aiming to increase market share, is called market penetration. This approach relies on enhancing core competencies, as opposed to seeking new markets or products via other strategies like market development, product development, or diversification.
Step-by-step explanation:
The strategy that concentrates on maintaining positions in established product-markets while paying less attention to new product development is known as market penetration. This approach involves businesses focusing on selling their existing products or services to their current market in an effort to increase their market share. Companies utilizing market penetration might work on improving product quality, increasing marketing efforts, or reducing prices to outcompete rivals. By concentrating on core competencies, a firm can develop a specialized expertise in its product offerings, leading to greater efficiency and potentially higher profitability. This contrasts with strategies like market development, product development, and diversification, which are geared towards exploring new markets, creating new products, or expanding into different areas of business, respectively.