Study of entrepreneurial pivots

Abstract

A pivot is defined as a change in a firm's strategy that reorients the firm's strategic direction through a reallocation or restructuring of activities, resources, and attention and re a reorientation of the firm's strategic direction, supported by resource commitments (Kirtley and O'Mahony, 2020). (CasadesusMasanell and Ricart, 2009) define strategy as the choice of business model through which the firm will compete in the marketplace'' . Hence a business model is the realization of the firm's strategy. From the above, pivots result in changes in the business model of the firm. The right business model results in product-market and business model fit. Start-ups define their business model on several assumptions on what the customer needs and how to best deliver it. However, all the initial assumptions are seldom correct. Even after achieving fit, markets change and adjusting the business model and thus pivoting becomes inevitable.