Final answer:
ABC Manufacturing adopts a strategy of focusing on core competencies and a market-oriented approach, excelling in a limited product range and serving the needs of its established customer base efficiently.
Step-by-step explanation:
ABC Manufacturing's strategy of concentrating on existing operations and protecting their home territory aligns with a business approach focused on core competencies. They maintain a competitive edge by not overextending their product line and excelling at what they do best. This strategy is grounded in the belief that specializing in a few key products or services can lead to greater success than offering a broad array of items. In fact, businesses that focus on their core competencies are often more successful because they can refine their products, reduce costs, and protect their market share against competitors.
In addition, ABC Manufacturing may also be considered to employ a market-oriented approach. This term refers to businesses that focus on meeting the demands of their customers and responding to market needs within their established geographic region. As in the case of ABC, this can involve minimizing transportation costs by producing and distributing products as close to the consumer base as possible, simulating the strategies seen with bulk-gaining industries like Coca-Cola, which produce their end product in various locations globally to optimize efficiency and address market needs effectively.