The story about Tagged, originally a social network competing with MySpace & Facebook and how they Pivoted:
By late 2007, our traffic was flat while others were growing. We weren’t in the top 5 social networks and faced being pushed out of the top 10. We had to acknowledge we’d lost the particular social networking battle we were fighting. We had to rethink and find a different path.
We took a step back and conducted a series of user polls and surveys. We also dug deep into our own stats to find answers to fundamental questions: Who were our users? What were they doing on Tagged? What was Tagged to them?
This was an “ah ha” moment for us! People weren’t using our site to stay in touch with their friends. They were using it to meet new people. Tagged isn’t social networking, it is social discovery.
Once they realized that, they started building with a different philosophy. It seems to have worked. Today they have 100M users with $30M in 2010 revenue.
Not bad for a little startup.