Strategy · business glossary
What is Pivot?
By Shivam Bhandari · Reviewed 31 October 2026 · How we write
definition
A significant, deliberate change in business model or direction, usually made after learning the original approach isn't working.
Pivot explained
A pivot is a fundamental change in a business's strategy, product or target customer based on what it has learned.
example
Instagram pivoted from Burbn, a check-in app, to photo sharing.
why it matters
Pivoting early saves time and money when the original idea isn't working.
common mistake
Pivoting constantly without giving any direction enough time to work.
Frequently asked questions
What is Pivot?
A significant, deliberate change in business model or direction, usually made after learning the original approach isn't working. A pivot is a fundamental change in a business's strategy, product or target customer based on what it has learned.
Why does Pivot matter?
Pivoting early saves time and money when the original idea isn't working.
What is a common mistake with Pivot?
Pivoting constantly without giving any direction enough time to work.
Related terms
MVP (minimum viable product)
The simplest version of a product that can still be released to real customers to test whether the underlying idea has value.
Disruption
A new entrant or technology that initially serves an overlooked segment more simply or cheaply, then moves upmarket to challenge established leaders.
Diversification
Expanding into new products, markets, or business lines to reduce dependence on any single source of revenue.