Even the most successful startups and companies can face problems. The interests and needs of customers change, competitors and new trends appear on the market. When a business loses money and customers, you need to be ready to pivot — change the course of business development. In this article, we tell you how to do this. We share examples of Russian and foreign companies that have pivoted.
What is a pivot and when is it used?
Pivot is a term that denotes a change in a company’s business model or development strategy. From English, pivot is translated as a turn, a reversal, or a rotation.
During the pivot process, the product, business india phone number list model, project development strategy or company promotion are changed. The main goal of the pivot is to avoid having to close the business. Therefore, the pivot is made when the business starts losing customers or profits, and not when the company is on the verge of bankruptcy.
For example, X, aka Twitter, was originally conceived as a taking inspiration is not copying communication platform where users could exchange short messages. Over time, the creators turned the product into a social network that allows sharing news and participating in discussions.
Reasons for pivot:
Low demand. If a company launches a new product or service but does not receive the expected interest from customers, it may need to reconsider its strategy. For example, if the product is too difficult to use or does not solve real problems for users, a pivot may be necessary.
In this case, the company decides what features need to be implemented to develop the product, which will help make it more attractive to users. For example, they use the Jobs To Be Done method to understand in which direction to turn.
Changing market conditions.
Customer needs are constantly changing. If a company italy numbers notices that its current strategy no longer meets market requirements, it may be worth considering pivoting.
For example, this is what Netflix did when they saw that people were no longer interested in renting movies. The company changed the concept: instead of renting, they launched streaming data.