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Business Pivots:

#BusinessPivot: Not a euphemism for failure but an ingredient to success

Did you know that #AirBnB used to sell Cereals while #Nokia was a paper mill earlier?

#Twitter started as ODEO (a podcast subscription company) while #Netflix famously was a DVD rental business.

Businesses should do Pivot when:

๐Ÿ›‘ Business model is obsolete

๐Ÿ›‘ Business model is not sustainable with depleting customer base and revenue

๐Ÿ›‘ New model provides an immediate solution to a large business gap

๐Ÿ›‘ Threat of major and long-term disruption in supply chain and customer base (upstream & downstream)

๐Ÿ›‘ Major Socio-politico-legal issues with the business

๐Ÿ›‘ New customer, old tech / Old customers, new tech

Major pivots that are super successful:

๐Ÿš€ #Netflix: From DVD rental to streaming giant (#Businessobsolescence)

๐Ÿš€ #IBM: From personal computing to IT Solution giant (#Depleting customer base)

๐Ÿš€ #WesternUnion: From telegram to Money transfer (#Businessobsolescence)

๐Ÿš€ย #Nokia: From Paper Mill to Mobile Giant

๐Ÿš€ #Playdoh: From wall cleaner to kids craft. (#Newusage)

๐Ÿš€ย #Nintendo: From playing cards to taxi services, Ramen Noodles, and back to Game consoles. (Pivot-repivot)

๐Ÿš€ #Starbucks: Business expansion from Selling coffee beans to the coffee retail giant

๐Ÿš€ #Twitter: From #odeo podcast to the microblogging giant

But not all pivots turn out to be successful: Pivots fail because of:

โžก๏ธ Pivoting very late

โžก๏ธ Incompetent manpower or limited resources

โžก๏ธ Me too strategy without a defined product market fit

โžก๏ธ Pivot is half-hearted and the extent of change does not match with requirement

Everyone fails at some point in time and while perseverance is good, it shouldnโ€™t be at the cost of continued bleeding financials and survival of business. The stigma and ego associated with failure lead many to carry the burden of failed initiatives for far too long than required.

This was first published as a post on LinkedIn by the Author

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