Zoom-in Pivot - Case Studies
Some inspiring case studies of companies/startups that successfully applied the zoom-in pivot include YouTube. Twitter, and Flickr. Additional information on the companies' websites, type of pivot and valuation has been compiled rows 3-5, column A-G of the attached spreadsheet.
- YouTube started as a video dating site where members would upload their videos and attract the attention of followers.
- Initially, the idea did not sell among users, to the point that the founders had to pay women $20 to upload their videos.
- The founders, Chad Hurley, Steve Chen, and Jawed Karim, decided to open the platform to all types of videos, ushering new dawn for a concept that was about to fizzle out.
- One of the events that inspired the developers was when Karim could not find the clip for Janet Jackson’s wardrobe malfunction during the 2004 Super Bowl halftime performance.
- Another event was when Chen and Hurley could not upload a dinner video because emails had attachment limits.
- YouTube was registered on 14th February 2005, uploaded the first video of “Me at the Zoo” in April 2005 and got the first video with 1,000,000 views (a Nike advert of Ronaldinho receiving his Golden Boots) in October 2005.
- Google saw the potential of YouTube and bought it for $1.65 Billion and expanded its features gradually.
- Today, YouTube is worth an estimated $90 billion from the original investment of $1.65 Billion in 2006.
- Flickr started in 2004 as a platform to play games, make items and sell as well as navigate maps.
- One of the features in the Game Neverending role-play was sharing photos, a feature that proved too popular for developers, Stewart Batterfield and Caterina Fake to ignore.
- The success of the photo-sharing feature convinced the founders and their mother company, Ludicorp to focus and develop the functionality.
- Yahoo found the idea viable and acquired Flickr for $35,000,000 in 2005, providing the capital needed to grow the features and become a dominant force in the photo-sharing online platform.
- Flickr is today known as the best photo sharing and management platform, allowing users to create galleries and share them with friends as well as communities with similar interests.
- Today, Flickr has more than 75 million registered photographers who upload over 25 million photos on a busy day, enabling the platform to hit over 90 million users every month.
- When Verizon acquired Yahoo, Flickr was sold as part of a $4.83 billion sell-off deal, raising its value beyond the $35 million when Yahoo bought it.
- Twitter started as Odeo, working on a podcasting platform in 2006. At the same time, one of the Odeo employees was working on an SMS based updating platform on the side called Twttr.
- iTunes kicked out Odeo out of the market, prompting the CEO to give attention to this less favored SMS updating platform.
- The CEO gave the team two ‘hackathon’ weeks to come up with another viable idea, and Twitter was born under Jack Dorsey and Biz Stone.
- Old investors and even the originator of the concept were bought out by returning the $5 million received as seed capital, though the details of the transaction are fuzzy.
- The micro blogging platform today has over 300 million active monthly users with 134 million logins daily.
- Twitter has transformed into a news source as well as a corporate marketing platform, significantly raising its value.
- Twitter is now estimated to be worth $32.85 billion based on share prices.