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Hidden Brain

When To Pivot

Mar 10, 2025
Rita McGrath, a Professor at Columbia University, dives into the dynamics of inflection points in business. She unpacks when to embrace change versus when to hold steady, using fascinating case studies like Coca-Cola's New Coke and Gillette's struggles against Dollar Shave Club. Rita explains the four stages of inflection points, the warning signs to look out for, and emphasizes the need for businesses to adapt to market disruptions. Listeners will gain insights on navigating personal and professional transitions like a pro.
49:48

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Podcast summary created with Snipd AI

Quick takeaways

  • Inflection points are significant changes that require swift recognition and adaptation in both business and personal contexts to thrive.
  • Understanding the emotional connections consumers have with products is crucial for companies to navigate successful pivots without alienating their customer base.

Deep dives

The New Coke Debacle

In 1985, Coca-Cola's introduction of New Coke aimed to counter the rising competition from Pepsi by creating a sweeter, smoother beverage. However, the rebranding was met with intense backlash from loyal consumers, who protested and expressed their dissatisfaction through numerous calls and letters. This resistance highlighted the emotional connection people had with the original Coke, viewing the change as an affront to their personal choices and American values. Ultimately, the failed launch forced Coca-Cola to revert to its classic formula, exemplifying the danger of altering a successful product without considering consumer attachment.

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