Problem
Pivoting happens when a company is heading towards failure but makes a strategic decision to change direction and modify their value proposition. There have been numerous pivots throughout history, many of which you may not be aware of. For example, Android began its life as a company that created operating systems for digital cameras. Unfortunately, they were founded right when smartphones began to steal market share from digital cameras, threatening their success. To respond to the new market, they changed to being a smartphone operating system and were later acquired by Google, Android now owns about 87% of the global smartphone market.
Bubble Wrap was originally designed to be wallpaper, and was a failure. However, around the same time it was created, IBM was about to ship one of the first computers ever commercially available; the 1401 unit. IBM was in need of some sort of material that would protect its sensitive electronics while in transit, and Bubble Wrap was the perfect solution. Bubble Wrap pivoted from an interior design company, to a packaging company.
a) What are some other examples of companies pivoting to survive (that you've heard of)?
b) If a company is unable to avoid failure, what are some ways to try to salvage value from the failed venture?