More from the Author

• Case | HBS Case Collection | April 2020 (Revised April 2020)

  TransDigm in 2017: The Beginning of the End or the End of the Beginning?

  Benjamin C. Esty and Daniel Fisher

  TransDigm was a highly acquisitive company that manufactured a wide range of highly engineered aerospace parts for both military and commercial customers. Over the ten years ending in 2016, its stock price had increase ten times, and both EBITDA and revenues had grown at compound annual rates in excess of 20%. But in early 2017, investors, customers, and government officials began to question the implementation, sustainability, and ethics of the firm’s unique value creation strategy. That strategy consisted of three parts: value-based pricing, cost reductions, and new product development. In the short term, CEO Nick Howley had to decide whether to respond to the barrage of criticism; in the longer term, he had to decide whether to change the firm’s highly successful strategy.

  Keywords: value capturing; Pricing strategy; supplier power; buyer power; Porter's Five Forces; bargaining power; monopoly; aerospace; acquisition strategy; value drivers; ethical behavior; regulation; growth strategy; Business ethics; defense; procurement; sustainability; Value-Based Business Strategy; Acquisition; Ethics; Private Equity; Financial Strategy; Growth Management; Performance Evaluation; Business Strategy; Competitive Strategy; Horizontal Integration; Value Creation; Competitive Advantage; Aerospace Industry; Air Transportation Industry; United States;

  Citation:

  Esty, Benjamin C., and Daniel Fisher. "TransDigm in 2017: The Beginning of the End or the End of the Beginning?" Harvard Business School Case 720-422, April 2020. (Revised April 2020.)  View Details

  CiteView DetailsEducators

  Related

• Supplement | HBS Case Collection | April 2020 (Revised April 2020)

  TransDigm in 2017: The Beginning of the End or the End of the Beginning?

  Benjamin C. Esty and Daniel Fisher

  TransDigm was a highly acquisitive company that manufactured a wide range of highly engineered aerospace parts for both military and commercial customers. Over the ten years ending in 2016, its stock price had increase ten times, and both EBITDA and revenues had grown at compound annual rates in excess of 20%. But in early 2017, investors, customers, and government officials began to question the implementation, sustainability, and ethics of the firm’s unique value creation strategy. That strategy consisted of three parts: value-based pricing, cost reductions, and new product development. In the short term, CEO Nick Howley had to decide whether to respond to the barrage of criticism; in the longer term, he had to decide whether to change the firm’s highly successful strategy.

  Keywords: Acquisition; Ethics; Private Equity; Financial Strategy; Growth Management; Performance Evaluation; Business Strategy; Competitive Strategy; Horizontal Integration; Value Creation; Competitive Advantage; Aerospace Industry; Air Transportation Industry; United States;

  Citation:

  Esty, Benjamin C., and Daniel Fisher. "TransDigm in 2017: The Beginning of the End or the End of the Beginning?" Harvard Business School Spreadsheet Supplement 720-855, April 2020. (Revised April 2020.)  View Details

  CiteView Details

  Related

• Case | HBS Case Collection | April 2020

  TiVo 2020

  David B. Yoffie, Daniel Fisher, David B. Yoffie and Daniel Fisher

  This short cases provides an update on TiVo from 2016-2020. The case covers TiVo merger with Rovi, the turnover of several CEOs, and struggles on how to reposition its product business (the digital video recorder).

  Keywords: streaming; Media; Technological Innovation; Strategy; Media and Broadcasting Industry;

  Citation:

  Yoffie, David B., and Daniel Fisher. "TiVo 2020." Harvard Business School Case 720-457, April 2020.  View Details

  CiteView DetailsEducatorsPurchase

  Related