In the business world, the term “pivot” is often heard in discussions about strategy and growth. It refers to a fundamental change in the direction of a business when the current products or services are not meeting the market needs. This concept is particularly prevalent in startups, where flexibility and adaptability are crucial for survival and success.
What does pivot mean in business? A pivot in business means making a significant change to the business model, product, or service to better meet the needs of the market. This could involve altering the target audience, changing the product features, or even completely transforming the company’s core offering. The goal is to find a more viable and sustainable path to growth and profitability.
Types of Pivots
There are several types of pivots that businesses can undertake. One common type is the “zoom-in” pivot, where a single feature of a product becomes the entire product. Another is the “zoom-out” pivot, where the current product becomes just one feature of a larger product. There’s also the “customer segment” pivot, where the company changes its target audience, and the “customer need” pivot, where the product changes to meet a different set of needs.
Another type is the “platform” pivot, where a company switches from an application to a platform or vice versa. Each type of pivot requires careful consideration and planning, as it involves significant changes that can impact the entire business operation.
Examples of Successful Pivots
Many well-known companies have successfully pivoted. For instance, Twitter started as a podcasting platform called Odeo. When the founders realized that podcasting was not a viable market, they pivoted to the microblogging service we know today. Another example is Netflix, which began as a DVD rental service before pivoting to a streaming service, fundamentally changing the way people consume media.
Pivots can be risky, but they can also lead to great success when executed correctly. The key is to recognize when a pivot is necessary and to implement it thoughtfully and strategically.
In business, a pivot is not just a change but a strategic shift aimed at finding a more promising direction for the company’s growth. It requires courage, insight, and a willingness to adapt to new circumstances.