Strategic Product Pivot saves a company from wasting resources

Ent Talk Co. (ETC) aimed to develop an internal communication tool for large-scale organizations to enhance employee interactions and streamline internal communications. However, ETC faced significant challenges in a competitive market, especially with the simultaneous launch of Meta’s Workplace, a similar product.

ETC's primary challenge was the direct competition from Meta's Workplace, which substantially threatened ETC's market capture. Based on subscriptions, the pricing model for ETC was significantly less competitive compared to Meta’s offering. This created a potential risk for low adoption and financial viability.

We employed our Customer Journey Excellence framework along with our capabilities in UX, CX, and product innovation to address these challenges. Our initial step involved a comprehensive diagnostic assessment of ETC’s product strategy and market positioning. This assessment revealed critical insights about the competitive landscape and customer expectations.

Focusing on product and innovation, we conducted extensive product research and market analysis. During this phase, we identified that Meta's Workplace would dominate the market due to its competitive pricing and established brand presence. This insight was pivotal in guiding ETC's strategic decisions.

Our team then recommended a complete UI overhaul to enhance the user experience and align better with customer needs. However, the critical insight from our research was the recommendation to scrap the product development altogether. Given the significant market overlap and pricing disadvantage, continuing with the product would likely result in substantial financial losses.

Based on our insights, the strategic pivot led to significant cost savings for ETC. By deciding to halt the product development, ETC avoided the high costs associated with competing directly against Meta’s Workplace. This decision saved the company approximately one million dollars, which would have been spent on product development, marketing, and customer acquisition efforts.

The decision to scrap the product allowed ETC to reallocate resources to more viable projects and strategic initiatives. This move prevented potential financial losses and reinforced ETC’s ability to adapt swiftly to market changes. Our team's comprehensive analysis and strategic foresight ensured that ETC maintained its financial health and strategic focus.