Netafim Case Study

Netafim is in a very interesting position. They are trying to become a knowledge based solution provider in the agricultural industry. Historically Netafim and its subsidiaries had been leaders in selling products in the space. Now they are looking to remain at the forefront of their industry by pivoting their strategy. Can they successfully make this shift? To answer this I will examine the short and long term risks that the company faces and how to manage them. I assume that Netafim will use their current line of products to provide solutions to farmers. I assume also employment will be available to the Kibbutz’s’ workers as long as they are owners of the company.

One of the most prominent risks facing Netafim comes in the form of managerial risk. Will management be able to take Netafim from a product based to consultative solution based organization? There are interesting questions as to how these changes will change the business. The entire selling process will become much different, much more hands on. There will need to be some additional training. Systems will be changed, and the revenue model will be completely different. They will need project managers, and knowledgeable salespeople that can sell and work with farmers on a closer level than before. Will there be turnover, departures? They will have to do everything they can do manage this fundamental change and come out successfully. This is a short term and organizational issue that is vital to the success of their pivot.

Another significant risk they face is the technical risk. Can they supply these knowledge-based solutions using their existing products in a scalable way? They must be able to fulfill the unique and complicated demands of their clients with their project management business. This naturally brings in supplier risk from the multitude of vendors they are going to need to utilize to be successful.

Netafim has many encourages pieces that provide evidence that they can have success moving to a knowledge based solutions firm. They have proven there is a market for the technologies in their products. They have lead the industry for years and have the infrastructure in the agricultural industry to make this work. They