Final answer:
The correct answer is option b. The most plausible reason for an innovator to adopt a stealth approach is to avoid direct competition with established market leaders. This strategy allows the innovator to grow and reduce risks quietly while building a competitive advantage.
Step-by-step explanation:
The most plausible explanation for an innovator using a stealth approach when selecting a market is b) To avoid challenging powerful incumbents directly. Innovators may choose a stealth approach to enter niche markets quietly or to stay under the radar of larger, established companies. This strategic move allows the innovator to grow the business, reduce technology risks, and possibly leverage complementary assets without immediate counteraction from incumbents.
Using a stealth strategy, the firm can build its market presence, refine its technology, and improve its competitive position before engaging more directly with market leaders. This approach has been particularly valuable in highly competitive industries, where early visibility can prompt swift and aggressive responses from incumbents that can hamper a new entrant's growth and sustainability.
Moreover, as established by the quotes from industry leaders such as Gregory Lee of Samsung, the ability to innovate and bring products to market can create a temporary competitive advantage, leading to above-normal profits. This reinforces the idea that a stealth entry approach could be vital in securing a foothold before competitors become aware and react.