That is a billion-dollar question. Let us share with you a partial list of responses:
Small market size: When the original target market is small (Airbnb: conference stay), do not hesitate to pivot towards a larger market (Airbnb: budget traveler).
Shrinking market: When the existing market (single-screen cinema hall) is on the wane and a new market with tremendous potential is opening up (multiplex).
Competition: When the market is under assault from a 1000-pound gorilla (Apple: iTunes), do not hesitate to abandon it; search for new opportunities and anchor your business to it (Twitter: Microblogging site).
Market reality: When you find that a product (Avon: perfume) designed to boost sales of your main product (Avon: book) is generating more interest, build your business around the product generating the larger interest.
Incorrect targeting: When you realize that you have targeted a product at a wrong segment (Marlboro: cigarette for women), pivot to position it right (Marlboro: cigarette for macho men)
Shifting market: The automobile market is shifting towards clean transportation. Therefore, major automobiles companies are pivoting to launch electric vehicles. Take movie halls. The market has shifted from a single screen to multiplex. Many single-screen cinema halls are pivoting to multiplex.
Hostile environment: When you realize that your current business is facing hostility from all sides (Philip Morris: cigarette), pivot towards a more welcoming environment (Philip Morris: creating a smoke-free future).
Incorrect business model: When the existing business model does not get traction (Nupedia), get inspiration from successful companies outside your industry and intelligently adapt their business model to suit your requirements (Wikipedia).
Setting a bigger market: When you sense that you can serve a bigger market (as Flipkart did when it pivoted to include fashion in its portfolio).
Presenting a product in a different way: Try to add new dimensions to existing products. Take deodorants in India, which L presented as a perfume. Today, perfume has become an industry standard and the market has witnessed explosive growth.
New opportunities opening up: The world is constantly changing so make the most of the opportunities that present themselves during these transitions. For example, the size of the print media market is shrinking. Today, news, stories, and entertainment are all consumed online and on-screen. Noticing this shift, media houses are pivoting and launching online editions.
Selling a product as an experience: When you feel that there is greater potential in selling your product (Starbucks coffee beans and espresso maker) as an experience (Starbucks coffee chain).
Inaccurate identification of customer pain point: When the pain point you thought would set the market on fire (Tune In, Hook Up) turns out to be a whimper and, in a serendipitous moment, you experience a pain point that you surmise is one for many other people— and you provide a solution (YouTube).
Your product becomes irrelevant: For example, the rotary phone. With the ever-increasing acceptance of mobile phones, it is becoming increasingly irrelevant.
We have always emphasized the importance of having a good website for your company because it can act as your best tool for marketing and sales. A poorly designed website can repulse people from your business and can cause you to lose customers before you even have them. Get in touch with HyperEffects to work on creating, enhancing, and making the website of your company more user-friendly.