Business Dictionary
Pivot
Definition
A shift in business strategy to test a new approach.
Deep Dive
A pivot refers to a fundamental change in a business's strategy, product, or target market, typically in response to market feedback, a lack of traction, or the discovery of a new, more promising opportunity. It is a strategic course correction, common among startups, that demonstrates agility and a willingness to adapt rather than a sign of failure. The goal is to identify a viable and scalable business model faster by iterating on initial assumptions.
Examples & Use Cases
- 1Flickr started as a multiplayer online game called Game Neverending.
- 2Starbucks initially sold espresso machines and coffee beans before pivoting to serving prepared coffee drinks.
- 3Slack began as an internal communication tool for a gaming company that ultimately pivoted to focus on the tool itself.
Related Terms
Lean StartupMinimum Viable Product (MVP)Business Model Canvas