Ross Geller’s frantic cry of “Pivot!” in the iconic ’90s sitcom Friends may have been about moving a couch, but the moment captures the urgency and frustration that comes with changing direction. Businesses face similar moments when strategies, products, or markets stop working as planned.
At their core, though, pivots are opportunities for growth—strategic shifts designed to improve results. Learn what a business pivot is, the different forms it can take, and how companies have successfully pivoted—plus, tips for planning and executing your own pivot.
What does pivot mean in business?
In business, a pivot is the act of changing a product, service, strategy, or business model to achieve better results. Pivots often occur when a product, platform, or particular audience isn’t meeting key performance indicators (KPIs), generating enough sales, or showing consistent growth. They can also be strategic moves to remain competitive in the market, capture an emerging trend, or serve a new customer segment.
Different types of pivots
A business can pivot in several ways. Here are some common examples of the ways companies change direction:
- Product pivot. This involves changing features of an existing product or service or transitioning to an entirely new product.
- Business model pivot. Also known as a revenue model pivot, this involves changing how a company generates income, such as moving from one-time sales to a subscription model.
- Problem pivot. If the problem the product or service initially set out to solve isn’t aligning with customer pain points, or there’s just too much competition, a business may perform this type of pivot.
- Platform or technology pivot. A company might switch the platform it uses to run its business or better serve customers, or develop a new app or website for service delivery.
- Customer segment pivot. If a company decides there is a more suitable target market for its product or service, it could pivot from its original target audience.
Why businesses pivot
Businesses usually pivot when it’s clear the current approach isn’t working. Signals can include missed KPIs, stagnant growth, or profitability issues. Customer feedback may also trigger a pivot, pointing to new needs or opportunities.
Sometimes the move is proactive rather than reactive. Some businesses anticipate a future pivot (e.g., launching with a basic product, knowing they’ll add features once funding grows). Companies also pivot to capture emerging markets or expand into adjacent niches.
For example, if a protein bar maker sees increasing interest in nut butters or protein powder, it might pivot to capture this demand.
Examples of business pivots
Real-world examples show how companies adapt when faced with challenges or opportunities. While the reasons for pivoting vary, the goal is the same: finding a path to sustainable growth.
Waterboy: Product pivot
Some pivots are intentional but happen sooner than expected. Hydration formula company Waterboy originally sold electrolyte drinks in cans. When its manufacturer flagged that the drink’s pH and acidic ingredients weren’t suitable for metal cans, the team had to rethink quickly.
As cofounder Mike Xhaxho explained on the Shopify Masters podcast, glass, cartons, and reformulating the drink were out of the question. Instead, the company shifted to hydration powder sticks—a change they had planned for a later iteration but were forced to fast-track out of necessity.
Loop: Customer segment and business model pivot
Reusable earplug brand Loop launched in 2016, targeting club-goers, concert enthusiasts, partiers, and others who attended places with high noise levels. Customer feedback revealed a broader market: people with general noise sensitivity. This insight prompted the company to expand its focus beyond nightlife and rethink who its products were for.
Loop also shifted its sales approach. Once primarily in physical retail stores like CVS, it pivoted to a direct-to-consumer (DTC) model, selling products through its own digital storefront and online retailers like Amazon.
Shopify: Business model and product pivot
Shopify didn’t start out as a commerce platform—it began as an online snowboard equipment retailer. After cofounders Tobias Lütke and Scott Lake realized the tools they needed to create the ecommerce shop they wanted didn’t exist, they decided to build them from scratch.
That decision led to a dramatic pivot: moving from selling snowboards to offering ecommerce software. Shopify has since grown into one of the world’s leading commerce platforms for online and in-person businesses.
Allbirds: Business model pivot
Wool sneaker brand Allbirds has pivoted a few times, but one of the most notable was the launch of Allbirds ReRun, a resale platform for secondhand shoes. On an episode of Shopify Masters, cofounder Joey Zwillinger acknowledged the risk of cannibalization but found ReRun was an opportunity to reach more of the market.
The pivot opened up a new channel: Customers unwilling to pay full price could still buy directly from Allbirds, with the company keeping resale in-house rather than leaving it to third parties.
Odd Bunch: Problem pivot
Fruit and vegetable subscription service Odd Bunch (originally Food Fund) started with a mission to reduce food waste and let customers customize their produce boxes down to the last item. Founder Divy Ojha explains on Shopify Masters that he quickly discovered that level of customization was unsustainable.
In response, the company streamlined its approach, offering customers just three box types based on size and seasonality. The pivot eased pressure on suppliers and created a simpler, more scalable model that still delivered on Odd Bunch’s core mission.
Undefined Beauty: Product pivot
Inclusive, clean beauty brand Undefined faced a pivotal moment when founder Dorian Morris met with Target buyers. As she relays on Shopify Masters, the buyers loved her brand but didn’t want CBD in the ingredient list. To secure the opportunity, she reformulated the product.
This change wasn’t a one-off. Dorian continues to refine her products based on feedback from customers and clients. “Some of my products have been reformulated because I’m always listening and optimizing behind the scenes,” she says. “Slow and steady wins the race.”
BrüMate: Customer segment pivot
Insulated drinkware brand BrüMate initially marketed to men. Over time, founder Dylan Jacob noticed his brand’s target audience wasn’t what he expected. “[Women] just resonate with the brand. They understood the direction that we were going and what we were trying to solve,” he says.
This insight led to a major pivot in marketing and product design to better appeal to women. The shift helped BrüMate connect with its true customer base and fueled significant sales growth.
Tips for a successful business pivot
- Clarify why you’re pivoting
- Make a pivot plan
- Be aware of the impact
- Take action quickly
- Monitor results and adapt
Successful pivots don’t happen by accident. They require careful planning, decisive action, and a willingness to adapt. The following tips can help guide businesses through the process and increase the chances of long-term success.
Clarify why you’re pivoting
To pivot effectively, you must understand the reason behind the change. Identify whether customer demands, product limitations, market opportunities, or shifts in your business plan are driving the pivot. Knowing the “why” helps you determine if you need to fully pivot or if smaller adjustments could work, such as updating a product feature instead of redesigning the entire product line.
Make a pivot plan
Once you’ve decided a pivot is right for your company, create a clear plan to guide the transition process. This should outline steps, required resources, financial considerations, and even small details such as marketing copy updates. Market research and competitor analysis can also help validate your decision, demonstrating whether there’s real demand for your new direction and what results similar companies have achieved. These insights can help with setting realistic goals around sales, adoption rates, and customer acquisition costs.
Be aware of the impact
While a new direction can be a great long-term move for a company, pivots can bring short-term disruption, from internal growing pains to customer confusion. Consider how the change will impact your existing customer base and how you can ease the transition. For instance, offering a discount code to clients who have to move from one platform to another can help.
Take action quickly
Once the plan is in place, don’t delay. Opportunities and customer goodwill can disappear if you don’t make changes in a timely manner. For example, if buyer interest points to a pivot, act while the demand is still strong (taking time to ensure it’s a worthy pivot, of course). If a large number of customers ask for a change that doesn’t happen, you could lose them to competitors.
Monitor results and adapt
After you implement your pivot plan, track the results for comparison to previous performance. In the business world, changes are always occurring, so while a pivot may seem to make all the difference, you should evaluate and refine it over time. This helps ensure it continues to support your company’s development and long-term growth.
Pivot meaning in business FAQ
What is a pivot in simple terms?
In business, a pivot is when a company decides to change direction, either with its product, business model, or technology, or with the market segment it’s targeting. This move is often strategic and stems from the brand wanting to get better results.
What is a pivot strategy?
A pivot strategy is a company’s plan for changing direction in one or multiple ways. It weighs the risks associated with the pivot and forecasts the expected outcomes. It maps the steps necessary to change this aspect of the business, including messaging, marketing, product development, and financial requirements.
Why does a company decide to pivot?
There are several reasons businesses pivot, but in general, it’s often because the current strategy or offering is not producing the desired results or because there’s a new opportunity worth taking advantage of. Common reasons for a pivot include underperforming products, limited revenue, and new market insights.
