What's A Business Pivot?

by Rino Abdulah Mei 31, 2023 Posting Komentar

4 Signs That You Must Pivot or Collapse Small Business Trends from smallbiztrends.com

The Basics of a Business Pivot

In the world of business, a pivot refers to a change in strategy or direction of a company. This change can happen for a variety of reasons, such as a shift in the market, new competition, or changing customer needs. Essentially, a pivot is a way for a business to adapt to changing circumstances and remain relevant and successful.

Why Businesses Pivot

There are many reasons why a business might need to pivot. Perhaps the company is facing declining sales or increased competition. Maybe a new technology has disrupted their industry, or customer needs have shifted. Whatever the reason, a pivot can be a smart move for a company that wants to stay competitive and relevant.

Types of Business Pivots

There are several types of pivots that a business can make. One common type is a product pivot, where a company shifts its focus to a new product or service. Another type is a customer pivot, where a company changes its target audience. A platform pivot involves changing the way a company delivers its product or service, while a business model pivot involves changing the way a company generates revenue.

Examples of Successful Business Pivots

Some of the most successful companies in the world have made successful pivots. For example, Instagram began as a location-based social network before pivoting to focus on photo-sharing, which is now its primary function. Twitter originally started as a podcasting company before pivoting to become the social media platform we know today. And Nintendo, originally a playing card company, pivoted to video games in the 1970s and has since become a major player in the industry.

How to Make a Successful Business Pivot

Making a successful pivot takes careful planning and execution. Start by analyzing the market and your competition, as well as your own strengths and weaknesses. Determine what changes need to be made, and develop a clear plan for how to make those changes. Communicate the pivot to your team and stakeholders, and be prepared to make adjustments as needed.

Benefits of a Successful Business Pivot

A successful pivot can bring many benefits to a company. It can help a company stay relevant in a changing market, attract new customers, and increase revenue. It can also help a company stay ahead of the competition and position itself as a leader in its industry.

Conclusion

In conclusion, a business pivot is a strategic change in direction that can help a company adapt to changing circumstances and stay competitive. Whether it's a product pivot, customer pivot, platform pivot, or business model pivot, making a successful pivot takes careful planning and execution. But if done right, a pivot can bring many benefits and help a company thrive in a rapidly changing business landscape.