Final answer:
A startup pivots by changing its strategy to better achieve its vision, which may involve altering its business model, products, or target market. Pivoting is a strategic move that aligns with the principle of focusing on core competencies for better success.
Step-by-step explanation:
When a startup pivots, it is employing a revised strategy in an attempt to achieve its original vision. This pivot often involves changing the business model, introducing new products, or targeting new markets. It is a common practice observed in the startup ecosystem where initial business plans may not yield the expected results, and the company needs to adapt to survive. Instead of continuing down an unsuccessful path, startups analyze market feedback, recognize shortcomings, and strategically shift directions.
Core competency is frequent in the context of startups that pivot. Businesses often focus on a narrow range of products or services they excel at, which can be more successful than trying to offer a wide variety that dilutes the brand and capabilities. The goal of a pivot is to redirect resources and focus toward more promising areas that can lead to growth and development.