A pivot in a business is when an organisation makes a fundamental change to the products or services they offer.
Usually a term associated with entrepreneurs and Start-Ups, many businesses across the globe should be thinking about pivoting, if they haven’t already started. Pivoting has never been more relevant than in the world we find ourselves in today.
The change in product or service offering can come about for a variety of reasons, however, some of the most typical reasons for pivoting are:
- A game-changing event occurring in the economy e.g the 2007 global credit crisis or Covid-19, resulting a decrease in demand for certain products and services
- Entrepreneurs and Start-Ups usually ‘pivot’ when their initial idea doesn’t go to plan and they go to their back up plans
Some of the most famous businesses that have pivoted and gone on to be hugely successful are:
Originally called Odeo and set up to help people network and sign up to podcasts, the business ‘pivoted’ when iTunes started to take over as the podcast platform of choice. Twitter changed direction pretty quickly as a result of this and developed into the status-updating micro-blogging platform that we know today.
Having started out as a check-in app called Burbn that included a gaming element as well as photo sharing, the creators were concerned that the app was becoming too cluttered. They decided to strip back the features of the app to just photos. Instagram went on to become the most widely used photo app for the iPhone.
The global chewing gum brand started out as a soap and baking powder business. Mr. Wrigley Junior decided to give away free chewing gum with purchases and to potential customers. The chewing gum became more popular than the original products and went on to be one of the most recognisable brands across the globe.
Many businesses may get left behind after the Covid-19, if they haven’t already started to pivot.
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