Businesses operate in a constant state of flux. The market trends keep changing, the customer needs, choices, and preferences keep changing, and the economic factors keep changing. It is, therefore, imperative for every company to constantly evaluate its product market fit. However, it is not a simple endeavor. There are multiple ways to pivot. It is critical to assess which pivoting strategy is right for us.
In his book, The Lean Startup, Eric Ries identifies different types of pivots that startups can make based on the insights gained from experimentation. These include customer segment pivots, solution pivots, and business model pivots, among others. Each pivot represents a strategic shift aimed at improving product-market fit and accelerating growth.
Here are a few product pivots you may consider:
Market Segment Pivot:
UrbanClap initially focused on providing services primarily to households. However, recognizing the growing demand from small businesses for professional services, UrbanClap pivoted its target market to include small and medium-sized enterprises (SMEs), expanding its customer base and revenue streams.
Product Feature Pivot:
Zomato started as a restaurant review website. However, in response to user demand and competition, Zomato pivoted to include food delivery services, enhancing its value proposition and revenue potential.
Platform Pivot:
Flipkart began as an online bookstore. Over time, Flipkart pivoted to become a multi-category e-commerce platform, offering a wide range of products across various verticals, attracting both buyers and sellers to its platform.
Technology Pivot:
Paytm started as a mobile recharge and bill payments app. However, Paytm pivoted to incorporate digital wallet services, enabling users to make a wide range of transactions, including online shopping, utility bill payments, and peer-to-peer transfers. It seems the time has come for them to pivot again!
Customer Need Pivot:
Ola expanded its services beyond traditional cab rides to include options like auto-rickshaws, bikes, and shuttle services. This pivot was driven by the need to provide affordable and convenient transportation solutions to customers with diverse mobility needs.
Business Model Pivot:
In its early days, Practo focused on providing appointment booking services for doctors and clinics. However, recognizing the growing demand for telemedicine and online consultations, Practo pivoted its business model to include virtual healthcare services, expanding its reach and revenue streams.
To stay relevant, we all need to constantly change our products and services. Sometimes a small feature tweak may work. Other times, it could mean a complete overhaul or even discarding a product line.
Subodh
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