Pivot: Definition, issues and explanations

A pivot is a major strategic modification that a startup or company makes to change its business model, product or customer target.

This transformation comes into play when the initial approach is not generating the expected results, or when new market opportunities arise.

The pivot thus makes it possible to adjust course by exploring new segments or modifying the offering to better meet users' real needs.

The use of a pivot is crucial in a context of high uncertainty, especially for startups testing their product on the market.

The pivot helps avoid failure by quickly adapting the offering to market reality, thus maximizing the chances of success.

It also promotes continuous innovation by encouraging entrepreneurs to remain open to customer feedback and adjust their strategy accordingly for sustainable growth.

The pivot usually begins with the analysis of user feedback, market data and initial product performance.

Then, the company identifies blocking points or untapped opportunities and decides to modify its model, whether by changing the core functionality, customer target, technology or business model.

The next phase involves testing the new approach, often via a minimum viable product (MVP), to validate assumptions before rolling out the solution on a larger scale.

Among the benefits of pivoting are better adaptation to the market, reduced risks associated with an unsuitable product, and stimulation of innovation within the company.

Pivoting also enables strategic agility, essential in competitive and changing environments.

However, pivoting has its drawbacks, including significant financial costs and time investment. It can also destabilize teams and create internal uncertainty.

An emblematic example of a pivot is Twitter, initially launched as Odeo, a podcasting platform. Faced with the emergence of iTunes, the company changed its model to become a microblogging social network.

More recently, Instagram pivoted from its initial approach as a geolocation social network to a simple and effective photo-sharing application.

These examples illustrate how a well-executed pivot can transform a struggling company into a global success.

• StartupGest - Pivoting defined
• Harvard Business Review - Pivoting and persevering in startups
• The Art of Pivoting (Slideshare)