As we prepare for ELIA Networking Days 2024, we’re excited to present a special two-part series spotlighting key discussion topics for the event. Following our exploration of co-creation—a transformative concept that enhances collaboration and innovation among language service providers—we’re shifting our focus to the art of pivoting. 

Pivoting your business model means changing the way you create and deliver value to your customers, based on new insights, opportunities, or challenges. It can be a powerful way to adapt to changing markets, customer needs, or competitive threats, and to find new sources of growth and innovation.

A pivot means fundamentally changing the direction when you realise your current products or services aren’t meeting the needs of the market. The main goal of a pivot is to take corrective action and help your company improve revenue or survive in the market, and it involves strategically changing the company’s business model, product, or target market. 

It’s often associated with startups and small businesses, which are perceived as more inherently agile and responsive than their more established counterparts.

Successful Pivoting Stories

Pivoting is not a rare or even unusual occurrence; many well-known businesses have pivoted significantly from their initial business models. Many startups focus on building their user base first and then determine how they can best monetise that base.  

• Play Doh was originally a wallpaper cleaner product and rebranded in the 1950s as a children’s modelling toy.
• Netflix started as a DVD rental service in 1997, and pivoted to streaming in 2007, eventually becoming a major producer of original content.
• Nintendo began life as a playing card company, and dabbled in television, hotels, and even food before going all-in on electronic entertainment.
• Slack started as a gaming company called Tiny Spec, and its team communication app was initially developed for internal use.
• PayPal was originally a company that developed security software for handheld devices.
• Dyson pivoted from vacuum cleaners to innovative hair care, launching products like the Airwrap and Supersonic hair dryer to disrupt the beauty industry.
• Spotify recently incorporated podcasts, audiobooks and courses into its music platform to adapt to changing market dynamics.

When to Consider Pivoting

The success stories above highlight that pivots can be driven by new market opportunities or challenges that necessitate change for survival and growth. 

A pivot isn’t a magic pill that can solve all your business woes or guarantee success. However, it presents a valuable opportunity for transformation, especially if you find yourself facing certain challenges. Consider pivoting your business if:

• You’re struggling to see progress despite significant investments of time and resources
• Your company feels like it’s constantly playing catch-up in a fast-paced market
• Too much competition is making it difficult to stand out and thrive
• Only one of your features or services is gaining traction, limiting your overall growth potential
• Customers aren’t responding to your products as anticipated, prompting a reassessment of your offerings
• Your perspective on the industry has evolved, revealing new insights that could guide your strategy
• You’ve identified an adjacent attractive market where your existing organisation, people, and knowledge could provide a competitive edge
• You see emerging trends that align with your expertise and can create new value for your customers
• You have received feedback indicating potential interest in alternative applications for your existing products or services

Timing is crucial when considering a pivot. Many entrepreneurs have brilliant ideas that faltered because the right technology wasn’t available, or the market wasn’t ready to embrace them. By carefully evaluating the timing and your unique circumstances, you can turn challenges into opportunities for meaningful change and growth.

How Can You Change?

When considering a pivot, the key to success often lies in refining one of your service features. Rather than attempting to offer a solution that tries to be everything for everyone, adopting a “less is more” approach can enhance your marketing impact and resonate more effectively with your audience.

Pivoting doesn’t always mean launching a new product or service. If your current offerings aren’t selling but you can’t identify any issues with them, it may simply be a matter of targeting the wrong audience. In this case, pivoting your marketing strategy could yield better results without the need to alter your core service.

In 2016, Selcuk Atli, CEO and Co-founder of Bunch, introduced the Pivot Pyramid concept, outlining five key areas to consider in your pivoting strategy:

1. Which customer to focus on

2. Which problem to solve for these customers

3. Which product or service to build to address these problems

4. Which technology to develop for this product or service

5. Which growth channels to scale this product or service

Alternatively, leverage your existing strengths to identify a singular feature to promote as your main offering. You may have developed a tool or software for internal use that could be beneficial to others. Consider marketing your team’s specialised language tech knowledge or process expertise, either to other players in the language industry or directly to clients. Additionally, if you’ve created training materials, explore opportunities to expand their use beyond your company.

While pivoting can be one of the most challenging decisions an entrepreneur faces, a successful pivot is achievable with careful planning and implementation. Embrace the opportunity for transformation, and you may unlock new paths for growth and innovation.

Let’s get the conversation started ahead of the ND24 roundtable discussions! What are your thoughts on pivoting? How could it grow your business or reshape our industry?

Share your insights on LinkedIn and join the discussion today! #ELIAdiscussion