How can innovation affect market opportunities?

Innovation plays a crucial role in shaping market opportunities by introducing new ideas, products, or processes that can significantly alter the landscape of an industry. When a company innovates, it often discovers unmet needs in the market or enhances existing solutions, which can lead to the creation of new market segments.

For example, the introduction of smartphone technology created vast new markets for apps, mobile services, and accessories that previously did not exist. This not only opens up new revenue streams for businesses but also fosters competition as new entrants vie for market share, pushing all players to improve and refine their offerings. Additionally, innovation can lead to improved efficiency or differentiation, which strengthens a company’s position against competitors.

Through these processes, innovation increases competitiveness not just for the innovators but also across the entire industry, driving advancements that benefit consumers and the economy as a whole. Such dynamics highlight the transformative power of innovation on market opportunities, making option B the accurate statement.