Pivot Inwards or Perish: An Underrated Strategy for Business Survival.

A big shoutout to Emeka Ajene for sparking this discussion with his thought-provoking tweet about strategic shifts within Nigerian fintechs. Emeka highlighted the moves of companies like Okra, Bamboo, and Vesti—perfect examples of what I like to call "pivoting inwards."

Unlike traditional pivots that often involve looking outward for new markets or entirely different products, pivoting inwards focuses on introspection. It’s about leveraging your company's existing operations, market position, and internal capabilities to address challenges or unlock new growth opportunities. This approach doesn’t require reinventing the wheel; instead, it refines and reimagines what's already within reach.

What Is Pivoting Inwards?

Pivoting inwards is all about reevaluating and maximizing the core strengths of your business. It can take many forms:

• Analyzing customer feedback to fine-tune your services.
• Scrutinizing P&L statements to identify inefficiencies or untapped opportunities.
• Leveraging existing technologies to introduce complementary features or products.

The beauty of this approach lies in its ability to create value without fundamentally altering the external face of the business. It’s about enhancing what’s already there and finding new ways to make it work harder for you.

Nigerian Examples of Inward Pivots

Nigerian fintechs like Okra, Bamboo, and Vesti offer fascinating case studies of this strategy in action:

• Okra: Initially focused on API fintech services, Okra leveraged its existing infrastructure to pivot into cloud services. This wasn’t about expanding into a new market but about using their technology and customer base to offer a complementary service that enhanced their value proposition.
• Bamboo: Starting as a stock trading platform, Bamboo introduced a remittance app. This inward pivot utilized their existing financial technology and user base to address another need in their market, driving both retention and new revenue streams.
• Vesti: Originally a neobank for immigrants, Vesti began testing airport concierge services. By understanding their customers' lifestyles beyond banking, they created an ecosystem of services tailored to their audience.

American Examples and Lessons

Pivoting inwards isn’t unique to Nigeria; global companies have embraced this approach with remarkable results. Here are some examples:

• Twitch: Launched as Justin.tv, a general live-streaming platform, Twitch pivoted inward by focusing on the gaming community, which was already part of their audience. They used their existing technology to cater to a specific niche, leading to explosive growth. It was sold for $970 million to Amazon.
• Netflix: Originally a DVD rental service, Netflix pivoted to streaming video after recognizing a shift in consumer behavior toward digital content. They leveraged their existing understanding of media distribution to dominate the streaming space. Netflix went Public and it's currently valued at $366.80 billion
• Slack: Started as an internal communication tool for a gaming company, Slack pivoted inward after recognizing its broader potential as a team collaboration platform. This move transformed the company into a global productivity leader. It was sold for $27.7 billion to SalesForce.

How to Pivot Inwards: Practical Suggestions

Here are some ways businesses can implement an inward pivot strategy:

1. Customer Needs Analysis: Conduct deep dives into customer feedback to identify unmet needs or recurring frustrations. This can reveal opportunities to use your existing capabilities in new ways. Example: Netflix’s pivot to streaming was based on insights about changing consumer preferences.
2. Financial Health Check: Review your P&L to find areas where you can increase efficiency, reduce costs, or maximize profitability. This might involve automating processes or integrating services to reduce overhead. Example: You can infer that Okra so a market need there to provided a Naira denominated AWS competitor.
3. Leverage Technology: Assess how your current tech stack can be adapted or enhanced for new functions within your market. Example: IBM has repeatedly pivoted over decades by leveraging advancements in its own technology, from hardware to AI-driven analytics.
4. Internal Resource Utilization: Look for untapped potential in your existing resources—whether it’s logistics, data, or personnel. Example: Amazon pivoted from selling books to launching AWS by repurposing its internal infrastructure to serve other businesses.

Conclusion

Pivoting inwards is about introspection, innovation, and using what you already have to solve new problems or capture new opportunities. It requires a deep understanding of your business, an openness to adapt, and the courage to make strategic shifts based on introspection.

Whether it’s Nigerian fintechs exploring new services or American giants refining their focus, inward pivots can be a powerful tool for sustainable growth. By focusing on customer insights, financial health, and existing technological advantages, businesses can remain competitive and relevant in an ever-changing market.

The next big opportunity might already be within your horizon, staring you right in the face—you just need to look inward to find it.