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Research Article

A Case Study of 3D Printer Manufacturing Startup Company C’s Pivot

Won Seok Seo1 · Lee, SangMyung1

1 Hanyang University

Published: January 2020 · Vol. 24, No. 1 · pp. 1-19

DOI: https://doi.org/http://dx.doi.org/10.17287/kbr.2020.24.1.1

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Abstract

Pivot is one of the key concepts in the Lean Start-up methodology. There are many examples of global startups that have succeeded through pivot, but pivot is not an all-round tool that leads everything to success. Faulty choices of pivot may lead to business failures and even take away opportunities for success. Therefore, although startup companies are required for careful analysis of their capabilities, resources, industries, and markets when selecting a pivot, there are no papers on the subject of startup‘s pivot in South Korea. This study analyzed the case of C's pivot with its main business of 3D printer development and manufacturing. This analysis provides an opportunity for startups to take into in-depth consideration of what factors they shall examine and what business risks are lined when they consider and implement pivots. Therefore, the paper would like to suggest specific implications that lead startups ultimately to the scale-up level through successful pivot. The company C was a technology-based start-up company, developing 3D printers and related components, however since its clients found out that the founder also had software development capabilities, they have started requesting IT-associated services. With the growth of the 3D printer market not yet full-fledged, the growth of related sales is confronted with the limit and at this time, turnover related to IT services, which are not Company C’s core business area, accounts for a large portion of total turnover. The founder also devotes more time and capacity to responding to IT service requests for clients, and eventually becomes concerned about pivot from manufacturing business related to 3D printers to IT service businesses. This case aims to provide an opportunity to consider ways to minimize failures and make rational choices in the process of critical choices such as pivot faced by startup companies in the growth process.
Keywords: 피봇린 스타트업창업기업전략전략적 의사결정사례 연구