How Do You Pivot Your Business Model to Stay Competitive?
We asked CEOs and founders to share their experiences pivoting business models to stay competitive. From expanding to new markets to investing in AI technology, here are fifteen different situations where business leaders had to make a change.
- Expand to New Markets
- Target All Industries
- Develop a Tracking API
- Transition to OOH
- Introduce Artificial Flowers
- Embrace E-Commerce
- Offer Seller Representation
- Emphasize Sustainability
- Integrate AI Technology
- Automate Social Media
- Launch Online Ordering
- Go Green and Efficient
- Offer New Roofing Services
- Provide Managed Services
- Invest in AI Technology
Expand to New Markets
The housing market has been a tough one for the past few years, and that has had a direct impact on our bottom line. High home prices and high-interest rates meant that fewer people were moving. This forced us to get creative and identify two key growth markets: apartment-moving services and packing services. By focusing on these two niches, we've been able to maintain our revenue levels and even grow into some lucrative urban markets that were never on our radar before.
Target All Industries
At FreeUp, we initially focused on providing a marketplace for freelancers to connect with businesses needing help. Our original model was more focused on businesses in e-commerce. But as the gig economy grew and demand for freelancers across industries surged, we saw an opportunity to expand beyond just e-commerce clients.
We decided to pivot the business model by opening up the platform to businesses from all industries, including marketing agencies, software companies, and even startups. This shift required changes in our marketing strategy, onboarding processes, and how we matched freelancers with clients. It was a risk because we were venturing outside our initial niche, but it paid off. The pivot allowed us to significantly grow our client base and freelancer pool, leading to more revenue streams and a larger impact.
Develop a Tracking API
When we launched TrackingMore in 2014, initially, it was just a website that offered shipment tracking to e-commerce businesses. We decided to pivot the business model to focus on developing a multi-carrier shipment tracking API. We envisioned that with the rapid growth of e-commerce, the logistics industry would follow suit as well. All these industries would need a reliable, robust shipment-tracking API that easily integrates with major carriers.
We focused all our efforts on this and rapidly integrated more carriers. We also launched an air-cargo tracking API that integrated with major airline carriers. These efforts brought us the attention of businesses that realized the development costs and time that our APIs could save them. Simply by integrating one of our APIs, they no longer needed to integrate with individual carrier APIs. They could now grow their operations faster and partner with more carriers without worrying about integration.
Staying on this course, TrackingMore is today one of the premier multi-carrier shipment tracking API providers. Our tracking APIs integrate with over 1,300 shipment carriers, including 80+ airline carriers.
Transition to OOH
For over 20 years, our company has thrived by staying ahead of industry trends and adapting to the ever-changing market landscape. Founded in 1998 as a print publication serving various areas of New York, we began as a small business, relying on local and regional advertisers. Despite our initial success in print, by 2000, we recognized a significant shift toward digital media. We understood that, while our publications were still growing, the future of print was uncertain, with the potential to lose relevance as the digital world expanded.
Anticipating this change, we proactively sought opportunities beyond print. We identified the out-of-home (OOH) advertising space as a sector with significant growth potential, free from the constraints of print revenue. We decided to acquire several media properties within this space, leveraging our strong and loyal client base to transition some of our existing clients to these new platforms.
This strategic pivot paid off. We gained substantial traction in the OOH sector, rapidly expanding our footprint and successfully engaging major national clients. As a result, our out-of-home business grew exponentially, surpassing our print revenue tenfold.
Our ability to adapt and evolve with market trends has been the cornerstone of our long-term success. Today, we continue to explore new opportunities, ensuring that we remain at the forefront of the industry, ready to meet the challenges of tomorrow.
Introduce Artificial Flowers
At KetieStory, we hit a crossroads about five years ago. Initially, our focus was solely on offering luxury floral designs for high-end weddings. But I recognized a rising trend of couples looking for more affordable-yet-aesthetically-pleasing alternatives. To address this shift, we pivoted our business model by introducing a collection of elegant artificial bridal bouquets. This move wasn’t just about expanding our product line; it was about adapting to meet our clients’ evolving needs while maintaining our commitment to beauty and quality. It taught me that staying competitive is about being receptive to changes in market dynamics and customer preferences.
Embrace E-Commerce
I have personal experience with how companies must change course when the market changes. One instance that comes to mind is a customer in the apparel sector. Their revenues began to decline as e-commerce took off, and the market's preference switched toward online buying, even though they were still doing well with their old retail strategy. We had to reconsider the entire company plan very rapidly. Together, we concentrated on establishing a powerful online presence, transferring their inventory to Shopify, and making social media advertising investments. It was more important to provide an engaging online experience for their audience than merely having a website. They had to make this change to remain competitive, and as a result, their internet sales have eclipsed their in-store sales.
Offer Seller Representation
In this business, you've got to stay on your toes. At House Buying Girls, we saw an opportunity to combine traditional real estate services with our cash-buying model. Being a licensed agent myself, I started offering seller representation alongside our usual quick-sale option. This hybrid approach has really set us apart in the Texas market and allowed us to serve a broader range of clients' needs.
Emphasize Sustainability
I had a pivotal moment in my business when I had to adjust my strategy to stay competitive. Several years ago, I observed a change in customer preferences leaning towards sustainable and eco-friendly products. As more competitors began offering environmentally conscious options, our sales started to decline, prompting me to realize the need for quick adaptation. I restructured our product offerings to emphasize native plants, pollinator-friendly varieties, and organic growing methods.
Additionally, we implemented a more transparent supply chain to showcase our dedication to sustainability. This shift not only allowed us to regain our market position but also connected us with a growing community of eco-conscious customers. This decision underscored the importance of closely monitoring industry trends and customer demands in order to prosper.
Integrate AI Technology
With the Christian Companion App, we initially focused on providing users with access to Bible verses and simple explanations. While this gained traction, it became clear that our offering wasn’t enough to differentiate us from other apps in the Christian tech space. The landscape was evolving quickly, and we risked blending into the background if we didn’t do something significant.
I realized that people were not only seeking scripture but also deeper understanding, engagement, and a personalized experience with their faith. That’s when we decided to pivot and fully integrate AI technology, specifically leveraging tools like ChatGPT, to offer more advanced features. We shifted from being just a Bible app to becoming a dynamic platform where users could have conversations about faith, ask questions, and explore the Bible in a personalized way. This approach made the app more interactive and educational, allowing users to engage on a deeper level.
This shift required rethinking our entire product, investing in more AI development, and reworking our marketing strategy. But it paid off. The personalized, AI-driven features gave us a competitive edge and attracted a larger audience. We saw an immediate increase in user engagement and retention, which translated into steady revenue growth.
Pivoting wasn’t easy, but it was essential. By focusing on the growing role of AI and recognizing what our users truly needed, we were able to adapt and thrive in a competitive market. This experience reinforced my belief that businesses need to be flexible and willing to embrace new technologies to stay ahead.
Automate Social Media
A pivotal moment came when we recognized the limitations of our initial approach, which relied heavily on manual social media management. We noticed that, despite the high quality of content our users were creating, they were struggling to maintain a consistent posting schedule across multiple platforms—which was hindering their engagement and growth.
To address this, we decided to pivot our business model by integrating advanced AI-powered automation features into our platform. This allowed us to offer our users a seamless experience in scheduling and repurposing content, which significantly reduced their workload while maximizing their social media impact.
This pivot not only increased user satisfaction but also expanded our customer base, as more businesses sought tools that could simplify their social media strategy without compromising quality. By focusing on automation and intelligent content-scheduling, we were able to stay ahead of the competition and provide real value to our users, ultimately driving the growth of RecurPost.
Launch Online Ordering
A pivotal moment for my floral business came when I recognized the increasing demand for online ordering amid changing consumer behaviors in recent years. Initially focused on walk-in customers and local deliveries through traditional means, I realized we needed to pivot toward e-commerce to remain competitive in a rapidly evolving market.
By developing an easy-to-navigate website with online ordering capabilities and integrating delivery services through local partners, we were able to tap into a broader customer base beyond just foot traffic. This shift not only allowed us to maintain sales during slower periods but also opened up opportunities for subscription services, where customers could sign up for regular deliveries of fresh flowers, ensuring consistent revenue streams even during off-peak seasons.
Go Green and Efficient
As an eco-friendly printing company, we've had to adapt to new technologies and sustainable practices to meet client demands and stay ahead of competitors. Early on, as digital printing came into play, we invested in the latest equipment and retrained staff to offer both offset and digital services. This allowed us to provide greater value and maintain our role as an innovative, full-service printer.
More recently, clients started asking about our environmental impact and carbon footprint. We realized sustainability had become essential to our brand and success. We sourced renewable materials, reduced waste, and achieved third-party certifications to verify our green practices. Promoting our sustainability initiatives has attracted new eco-conscious clients and secured our position as leaders in eco-friendly printing.
However, the costs of going green threatened our competitiveness. We addressed this by improving efficiency and streamlining operations. Choosing sustainable options that also reduced expenses, like low-energy LED lighting and print-on-demand technologies, allowed us to lower prices without compromising our values. Focusing on sustainability and affordability has strengthened our brand and increased revenue.
Offer New Roofing Services
As the owner of Herts Roofing & Construction, I’ve had to adapt to changes in building regulations and incorporate new roofing materials to stay competitive. When stronger wind-resistant roofing requirements were introduced, we invested in training our crews on installing impact-resistant shingles and underlayments. Though initially more expensive, these products reduced repair costs from storm damage and provided energy-efficiency incentives for our customers.
More recently, to address increasing demand for sustainable solutions, we partnered with a solar company to offer roof-integrated solar panels. The additional service has attracted environmentally conscious clients and stabilized revenue streams between roofing projects.
Making the right strategic decisions at the right time has been key to overcoming challenges. Whether improving our technical capabilities or expanding into new service areas, staying attuned to client needs and regulatory shifts allows us to pivot in a way that strengthens our business. Not all changes are easy, but embracing those that align with our goal of providing the best solutions for our customers’ homes has fueled our growth.
Provide Managed Services
One of the most significant pivots I had to make was during my time running the telecommunications company. We initially operated as a standard service provider, focusing on equipment sales and installations. However, the market quickly became saturated, and larger competitors were able to undercut smaller businesses like mine. It was clear that continuing on the same path would lead to a decline in profitability and market share. Leveraging my experience in telecommunications and my strategic understanding from earning an MBA, I identified an emerging need for managed services, where businesses outsourced their entire communications infrastructure to third-party providers.
We completely restructured the company from a product-based business to a service-based model. This meant retraining staff, investing in new technologies, and altering our sales approach to offer long-term contracts instead of one-time sales. The transition was challenging, but my background in finance helped ensure we maintained cash flow during the shift. The pivot not only stabilized the business but significantly increased our revenue and customer retention. Within a year, we grew our team to 30 employees and were generating millions in recurring revenue, which was a direct result of reading the market accurately and leveraging my years of experience to make informed, strategic decisions.
Invest in AI Technology
We had to pivot our business model when we noticed a growing demand for faster, more-automated transcription services in the industry. Initially, our focus was on manual, high-touch transcription processes, but we quickly realized that relying solely on this method would make it difficult to stay competitive. In response, we invested in AI-powered transcription technology to complement our manual services, allowing us to offer quicker turnarounds while maintaining accuracy. This pivot not only helped us meet market demands but also attracted a broader client base, ultimately boosting our growth in a highly competitive environment.
