{"id":25625,"date":"2026-03-03T22:27:06","date_gmt":"2026-03-03T20:27:06","guid":{"rendered":"https:\/\/pointofnew.at\/glossary\/pivot\/"},"modified":"2026-03-06T15:43:14","modified_gmt":"2026-03-06T13:43:14","slug":"pivot","status":"publish","type":"page","link":"https:\/\/pointofnew.at\/en\/glossary\/pivot\/","title":{"rendered":"Pivot"},"content":{"rendered":"<p><!-- TL;DR Box --><\/p>\n<div style=\"background:#f0f1f3;padding:1.2em 1.5em;margin-bottom:2em;border-radius:8px;\">\n<strong>Summary:<\/strong> A pivot is a strategic change in direction for a startup or company, where the business model, product, or target audience is fundamentally adjusted based on market insights. Pivoting is not a failure, but a central element of the Lean Startup methodology.\n<\/div>\n<nav style=\"background:#f9f9f9;padding:1.5rem 2rem;border-radius:8px;margin-bottom:2rem;\">\n<strong style=\"font-size:1.1rem;\">Table of Contents<\/strong><\/p>\n<ol style=\"margin:0.75rem 0 0;padding-left:1.25rem;\">\n<li><a href=\"#definition\" style=\"text-decoration:none;color:#1a5276;\">What is a Pivot?<\/a><\/li>\n<li><a href=\"#arten\" style=\"text-decoration:none;color:#1a5276;\">Types of Pivots<\/a><\/li>\n<li><a href=\"#erkennen\" style=\"text-decoration:none;color:#1a5276;\">When is a Pivot Necessary?<\/a><\/li>\n<li><a href=\"#durchfuehrung\" style=\"text-decoration:none;color:#1a5276;\">Executing a Pivot: Step by Step<\/a><\/li>\n<li><a href=\"#beispiele\" style=\"text-decoration:none;color:#1a5276;\">Well-Known Pivot Examples<\/a><\/li>\n<li><a href=\"#fehler\" style=\"text-decoration:none;color:#1a5276;\">Typical Mistakes When Pivoting<\/a><\/li>\n<li><a href=\"#faq\" style=\"text-decoration:none;color:#1a5276;\">Frequently Asked Questions About Pivoting<\/a><\/li>\n<\/ol>\n<\/nav>\n<h2 id=\"definition\">What is a Pivot?<\/h2>\n<p>A <strong>pivot<\/strong> describes a fundamental strategic change of direction for a company. The term was coined by Eric Ries in the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/lean-startup\/\" style=\"color:#1a5276;text-decoration:none;\">Lean Startup method<\/a> and describes the moment when a company realizes that the current strategy is not leading to <a href=\"https:\/\/pointofnew.at\/en\/glossary\/product-market-fit\/\" style=\"color:#1a5276;text-decoration:none;\">product-market fit<\/a>\u2014and takes a new direction. <\/p>\n<p>Crucially: A pivot is not a panic reaction, but a data-based decision. The company often retains part of its previous insights (technology, team, customer knowledge) and specifically changes the elements that are not working. A pivot thus differs from a complete restart.  <\/p>\n<h2 id=\"arten\">Types of Pivots<\/h2>\n<p>Eric Ries identifies various pivot types that relate to different elements of the <a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">business model<\/a>:<\/p>\n<ul>\n<li><strong>Zoom-in Pivot:<\/strong> A feature of the product becomes a standalone product\u2014often when a secondary feature generates more resonance than the core product.<\/li>\n<li><strong>Zoom-out Pivot:<\/strong> The product becomes a feature of a larger product\u2014expanding the scope.<\/li>\n<li><strong>Customer Segment Pivot:<\/strong> The product solves a problem\u2014but for a different <a href=\"https:\/\/pointofnew.at\/en\/glossary\/target-audience-analysis\/\" style=\"color:#1a5276;text-decoration:none;\">target audience<\/a> than originally intended.<\/li>\n<li><strong>Customer Need Pivot:<\/strong> The target audience is correct, but the problem solved is different than assumed\u2014based on <a href=\"https:\/\/pointofnew.at\/en\/glossary\/jobs-to-be-done-jtbd\/\" style=\"color:#1a5276;text-decoration:none;\">Jobs-to-be-Done<\/a> insights.<\/li>\n<li><strong>Platform Pivot:<\/strong> From an application to a <a href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-economy\/\" style=\"color:#1a5276;text-decoration:none;\">platform<\/a> or vice versa.<\/li>\n<li><strong>Business Architecture Pivot:<\/strong> Switching between B2B and B2C, or between high-margin\/low-volume and low-margin\/high-volume.<\/li>\n<li><strong>Revenue Model Pivot:<\/strong> Changing the revenue model\u2014e.g., from a one-time sale to a <a href=\"https:\/\/pointofnew.at\/en\/glossary\/pricing-strategy\/\" style=\"color:#1a5276;text-decoration:none;\">subscription<\/a>.<\/li>\n<li><strong>Channel Pivot:<\/strong> Changing the distribution channel\u2014e.g., from direct sales to online or a partner network.<\/li>\n<li><strong>Technology Pivot:<\/strong> The same solution, but based on a different technology.<\/li>\n<\/ul>\n<h2 id=\"erkennen\">When is a Pivot Necessary?<\/h2>\n<p>Typical signals that a pivot should be considered:<\/p>\n<ul>\n<li><strong>No Product-Market Fit:<\/strong> Despite several iterations, customers do not buy or use the product long-term.<\/li>\n<li><strong>Wrong target audience responds:<\/strong> Different customers than planned show interest\u2014a signal for a customer segment pivot.<\/li>\n<li><strong>Single feature dominates:<\/strong> Users only use a small part of the product\u2014zoom-in potential.<\/li>\n<li><strong>Monetization fails:<\/strong> The product is used, but the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/pricing-strategy\/\" style=\"color:#1a5276;text-decoration:none;\">pricing strategy<\/a> is not working.<\/li>\n<li><strong>Market change:<\/strong> <a href=\"https:\/\/pointofnew.at\/en\/glossary\/disruptive-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Disruptive innovations<\/a> or new competitors change the rules of the game.<\/li>\n<li><strong>Burn rate too high:<\/strong> Costs exceed revenue without a visible turnaround.<\/li>\n<\/ul>\n<p>The <a href=\"https:\/\/pointofnew.at\/en\/glossary\/lean-startup\/\" style=\"color:#1a5276;text-decoration:none;\">build-measure-learn loop<\/a> provides the data for this decision. A systematic <a href=\"https:\/\/pointofnew.at\/en\/glossary\/innovation-process\/\" style=\"color:#1a5276;text-decoration:none;\">innovation process<\/a> helps to identify the right time. <\/p>\n<h2 id=\"durchfuehrung\">Executing a Pivot: Step by Step<\/h2>\n<ol>\n<li><strong>Analyze data:<\/strong> What is working, what isn&#8217;t? Evaluate customer feedback, usage data, and <a href=\"https:\/\/pointofnew.at\/en\/glossary\/swot-analysis\/\" style=\"color:#1a5276;text-decoration:none;\">SWOT analysis<\/a>. <\/li>\n<li><strong>Formulate hypothesis:<\/strong> What exactly are we changing\u2014and why do we believe the new direction will work better?<\/li>\n<li><strong>Preserve assets:<\/strong> Which insights, technologies, customer relationships, and competencies can we take with us?<\/li>\n<li><strong>Design new model:<\/strong> Create a <a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-canvas\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Canvas<\/a> and <a href=\"\/glossar\/value-proposition\/\" style=\"color:#1a5276;text-decoration:none;\">Value Proposition Design<\/a> for the new direction.<\/li>\n<li><strong>Build MVP:<\/strong> Quickly create a new prototype and validate it using the <a href=\"https:\/\/pointofnew.at\/en\/glossary\/lean-startup\/\" style=\"color:#1a5276;text-decoration:none;\">Lean Startup<\/a> approach.<\/li>\n<li><strong>Engage stakeholders:<\/strong> Inform and convince the team, investors, and partners about the change of direction.<\/li>\n<li><strong>Iterate:<\/strong> Even after the pivot, the rule remains: measure, learn, adapt.<\/li>\n<\/ol>\n<h2 id=\"beispiele\">Well-Known Pivot Examples<\/h2>\n<ul>\n<li><strong>Slack:<\/strong> Started as the gaming company Tiny Speck\u2014the internal communication tool became a billion-dollar product (zoom-in pivot).<\/li>\n<li><strong>Instagram:<\/strong> Began as the location check-in app Burbn\u2014the photo filter became the core (zoom-in pivot).<\/li>\n<li><strong>Netflix:<\/strong> From DVD mail-order to streaming\u2014and further to content producer (technology + business architecture pivot).<\/li>\n<li><strong>Shopify:<\/strong> Started as an online shop for snowboards\u2014the e-commerce software became a <a href=\"https:\/\/pointofnew.at\/en\/glossary\/platform-economy\/\" style=\"color:#1a5276;text-decoration:none;\">platform<\/a> (platform pivot).<\/li>\n<li><strong>Twitter:<\/strong> Originated as the podcast platform Odeo\u2014the microblogging service was originally a side project.<\/li>\n<\/ul>\n<p>These examples show: Successful pivots are based on real market insights, not wishful thinking.<\/p>\n<h2 id=\"fehler\">Typical Mistakes When Pivoting<\/h2>\n<ul>\n<li><strong>Waiting too long:<\/strong> Sticking with a strategy that is not working because you have &#8220;already invested so much&#8221; (sunk cost fallacy)<\/li>\n<li><strong>Pivoting too quickly:<\/strong> Changing direction before enough data is available\u2014not every negative signal requires a pivot.<\/li>\n<li><strong>Changing too much:<\/strong> A good pivot specifically changes one element\u2014not everything at once.<\/li>\n<li><strong>Deciding without data:<\/strong> Pivoting based on gut feeling instead of customer validation.<\/li>\n<li><strong>Not involving the team:<\/strong> A pivot without team communication leads to uncertainty and turnover.<\/li>\n<li><strong>Discarding insights:<\/strong> Previous learnings are valuable\u2014a pivot should build upon them.<\/li>\n<\/ul>\n<p><!-- CTA Box --><\/p>\n<div style=\"background:linear-gradient(135deg,#1e3a5f,#2563eb);color:#fff;padding:2rem;border-radius:12px;margin:2rem 0;text-align:center;\">\n<h3 style=\"color:#fff;margin-top:0;\">Are you facing the decision to pivot your business model?<\/h3>\n<p style=\"font-size:1.1rem;\">We support you with data-based analysis and strategic guidance\u2014for a change of direction with substance.<\/p>\n<p><a href=\"https:\/\/pointofnew.at\/en\/business-model-innovation-services\/\" style=\"display:inline-block;background:#fff;color:#1e3a5f;padding:0.75rem 2rem;border-radius:8px;text-decoration:none;font-weight:600;margin-top:0.5rem;\">\u2192 Schedule a consultation now<\/a>\n<\/div>\n<p><!-- FAQ --><\/p>\n<div class=\"faq-section\" itemscope=\"\" itemtype=\"https:\/\/schema.org\/FAQPage\">\n<div>\n<h2 id=\"faq\">Frequently Asked Questions (FAQ)<\/h2>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">Is a pivot a sign of failure?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>No\u2014a pivot is a sign of the ability to learn. Most successful startups have pivoted at least once. In the Lean Startup philosophy, the pivot is an expected part of the process: testing hypotheses, learning, and adapting. Failure would be holding on to a strategy that doesn&#8217;t work.   <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">How do I know whether to pivot or persevere?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Ask yourself: Are we still learning, or are we going in circles? Are there positive signals from the market that justify hope? Have we tested enough different approaches? If the data consistently shows that the current direction is not working, it is time for a pivot.   <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">Can established companies also pivot?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Yes\u2014although there it is more often referred to as a strategic realignment or business model transformation. Examples: Adobe (from software licensing to SaaS), Microsoft (from Windows-focus to cloud-first), Fujifilm (from film to cosmetics and medical technology). The process requires intensive change management.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<\/div>\n<div>\n<details itemscope=\"\" itemprop=\"mainEntity\" itemtype=\"https:\/\/schema.org\/Question\" style=\"background:#eaecee;border-radius:8px;margin-bottom:0.75rem;overflow:hidden;\">\n<summary itemprop=\"name\" style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;\">How do I communicate a pivot to investors?<\/summary>\n<div itemscope=\"\" itemprop=\"acceptedAnswer\" itemtype=\"https:\/\/schema.org\/Answer\" style=\"padding:0 1.2rem 1rem;color:#2c3e50;\">\n<div itemprop=\"text\">\n<p>Transparently and based on data: Show which insights justify the pivot, what you have learned, and why the new direction is more promising. Investors respect data-driven decisions. A good pitch deck for the new direction strengthens trust.  <\/p>\n<\/div>\n<\/div>\n<\/details>\n<details style=\"background:#eaecee;border-radius:8px;padding:0;margin-bottom:0.75rem;\">\n<summary style=\"padding:1rem 1.2rem;font-weight:600;cursor:pointer;color:#2c3e50;list-style:none;\">What types of pivots exist and which is most common?<\/summary>\n<div style=\"padding:0 1.2rem 1rem 1.2rem;\">The most common pivot types include customer segment pivots, problem pivots, solution pivots, and business model pivots. Customer segment pivots are particularly frequent, where companies realize their product better serves a different audience than originally intended. For example, Slack originally started as a gaming company before pivoting to enterprise communication software when they recognized the real opportunity.<\/div>\n<\/details>\n<\/div>\n<\/div>\n<p><!-- Verwandte Begriffe --><\/p>\n<div style=\"margin-top:2.5em;padding-top:1.5em;border-top:1px solid #e2e8f0;\">\n<strong>Related terms:<\/strong><\/p>\n<div style=\"display:flex;flex-wrap:wrap;gap:0.5rem;margin-top:0.5rem;\">\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/lean-startup\/\" style=\"color:#1a5276;text-decoration:none;\">Lean Startup<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/product-market-fit\/\" style=\"color:#1a5276;text-decoration:none;\">Product-Market Fit<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/startup\/\" style=\"color:#1a5276;text-decoration:none;\">Startup<\/a><br \/>\n<a href=\"\/glossar\/geschaeftsmodell-innovation\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Innovation<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/business-model-canvas\/\" style=\"color:#1a5276;text-decoration:none;\">Business Model Canvas<\/a><br \/>\n<a href=\"\/glossar\/value-proposition\/\" style=\"color:#1a5276;text-decoration:none;\">Value Proposition Design<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/scaling\/\" style=\"color:#1a5276;text-decoration:none;\">Scaling<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/pitch-deck\/\" style=\"color:#1a5276;text-decoration:none;\">Pitch Deck<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/change-management\/\" style=\"color:#1a5276;text-decoration:none;\">Change management<\/a><br \/>\n<a href=\"https:\/\/pointofnew.at\/en\/glossary\/agile-methods\/\" style=\"color:#1a5276;text-decoration:none;\">Agile Methods<\/a>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Summary: A pivot is a strategic change in direction for a startup or company, where the business model, product, or target audience is fundamentally adjusted based on market insights. Pivoting&hellip;<\/p>\n","protected":false},"author":1,"featured_media":24529,"parent":25140,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-25625","page","type-page","status-publish","has-post-thumbnail","hentry"],"featured_image_src":"https:\/\/pointofnew.at\/wp-content\/uploads\/2025\/07\/Point-of-New-Business-Model-Innovation-Benedikt-Hasibeder-scaled.png","_links":{"self":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25625","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/comments?post=25625"}],"version-history":[{"count":12,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25625\/revisions"}],"predecessor-version":[{"id":28284,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25625\/revisions\/28284"}],"up":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/pages\/25140"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media\/24529"}],"wp:attachment":[{"href":"https:\/\/pointofnew.at\/en\/wp-json\/wp\/v2\/media?parent=25625"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}