A company changes direction, or pivots its business strategy, for various reasons. Success is linked directly to the customers and the competition, so a company may need to analyze the competition and customer experience to find what isn’t working. Everything may need to be revised, including the company’s methods and set of goals. Once a business has seen its progress plateau, a pivot strategy may be the best investment.
Plans change, and it’s important to recognize when plans should change so as not to waste more resources going in a direction that isn’t benefiting the company. Companies should expect to invest money and resources before they ever see a return on investment. However, something needs to change when the return doesn’t help the company turn a significant profit.
A company might also need to change its methods when there are too many competitors in the industry. It takes a long time to build a customer base; long-standing companies tend to have a loyal customer base. Those who want to compete must offer something better, something different, or a solution to an existing problem.
A strategic pivot might be necessary if the customers haven’t responded to a company’s products and services as expected. The company may need to change its marketing strategies or its products and services. It may need to direct focus to one well-received product or service. In some cases, businesses would do well to improve a single feature of the product or service of interest. It may even be the case that the product doesn’t need changing—perhaps the product is just better suited for a different audience.
Finally, a thorough analysis can change one’s perspectives on the whole industry. Perhaps there’s too much competition, and there’s no way to compete. Maybe no one wants to buy the currently offered products. A product, or even the company, may need re-branded.
Many companies benefit from pivoting from their original business strategies. Regardless of the type of change, the change should be slow and steady. Too many changes or an overabundance of new products or features can be overwhelming to customers. Analysis of the company’s progress and the industry can help owners decide the right course of action.