Which strategy focuses on entering new markets with new products?

The strategy that focuses on entering new markets with new products is diversification. This approach involves a business expanding its operations into new markets while simultaneously offering new products that it has not previously sold. Diversification allows a company to spread its risk by exploring new opportunities, potentially reaching a broader customer base and increasing revenue sources. It can also be a way to leverage the existing capabilities of the company in different markets, thus facilitating growth and reducing dependence on any single market.

Other strategies, while they involve product or market changes, do not encapsulate both aspects highlighted in the question. For instance, market penetration mainly focuses on increasing sales of existing products in existing markets. Market development entails entering new markets with existing products, and product development involves creating new products for existing markets. Since the question specifically addresses the introduction of both new markets and new products, diversification is the strategy that aligns perfectly with that definition.