1. The zoom in
A single feature of a product is made the essence of a new product, this feature becomes the whole product.
For example, Burbon started as a social network app. The photo upload feature was so popular that all other features were stripped away and this became instagram.
2. The zoom out
What was considered the whole product becomes a feature of a much larger product.
For example, Amazon started with only selling books online.
3. Customer segment pivot
Targeting a new customer segment in addition to the original market segment.
For example, the first Jeeps were designed and developed for the US Army as a military reconnaissance car in support of the WW2 war efforts. The etymology of the word Jeep is the slurring of the initial G.P. for Government Purpose vehicles.
Nespresso was originally focusing on the office corner segment in a B2B model. Only 3 years later did it make the first steps to target consumers in a direct B2C model.
4. ‘Customer need’ pivot
The target customer has a problem worth solving. Just not the one that was originally anticipated.
Mr. William Wringley Jr. was selling baking powder. Speaking to his customers he understood that the differentiating value was not in the baking powder but in the free chewing gum he provided with the baking powder. He decided to manufacture chewing gums only. Today wringley is part of the Mars group.
5. Business model pivot
Changing an element in the business model can create new sales opportunities. For example Microsoft office changed from a one-time purchase to an “as a service” sales model.
The Franchise model of the McDonalds took off after the decision to lease the land on which the McDonals franchises are built. Today McDonals is the biggest real estate holding in the world.
6. Channel pivot
A company changes the sales or distribution channel.
The original Tupperware patented plastic bowls and other products didn’t sell well through retail channels. It was to novice and difficult for people accustomed to glass jars and ceramic containers. The Tupperware party concept was initiated by Brownie Wise in the late 1940s as a way to educate the American housewife of the benefits of Tupperware plastic ware.
7. Technology pivot
Providing the same solution via a new technology.
Netflix started renting VHS tape movies on a monthly subscription basis. Later the DVD made it easier to deliver the service through the mailbox. The internet made it possible to stream the video and expand globally.