Back to search

Innovating Buyer-Supplier Relationships in the Aerospace Industry: Performance-Based Contracting

By Karan Girotra,  Serguei Netessine,  Jean-Sebastien De Looz
Published 26 Jun 2017
Reference 6053
Topic Operations
Industry Airlines/Aviation,  Transportation/Trucking/Railroad
Region Global
Length 14 page(s)
Inspection copy
6.00
Add to cart
Summary

The case presents a new business model in the jet engine industry - performance based contracting for jet engine maintenance. It explains the trade-offs, challenges and guidelines for successful implementation of these contracts, including direct and supply chain effects.

Teaching objectives

To illustrate a new business model, and highlight different contracting schemes.

Keywords
  • New business models
  • Performance-based contracting
  • Risk-driven business model
  • Contracting
  • Supply Chain Management
  • Aviation
  • Rolls-Royce
  • Maintenance
  • Incentives
  • Q41617
About the authors
Girotra

Karan Girotra

Netessine

Serguei Netessine

Jean-Sebastien De Looz


Recommended Cases

Better Place: The Electric Vehicle Renaissance

By  Karan Girotra,  Serguei Netessine,  Prash Pokala,  Disha Gupta
Add to cart popular

  • Reference 5784

  • Published 29 Mar 2011

  • Length 12 page(s)

  • Topic Operations

  • Region Global

This case describes the innovative business model of Better Place Inc., an electric vehicle company. The key challenges in operating the business model are explained and data is provided to help compute the costs, benefits, net profitability and economies of scale that it offers.
    View case

    From Blockbuster to Video on Demand: Distribution Channel Innovation in the U.S. Video-Rental Industry

    By  Karan Girotra,  Serguei Netessine,  Marc Coluccio
    Add to cart
    This case traces the evolution of the video rental industry over the last 20 years. It outlines the rise and fall of different business models, highlighting delivery innovations by Netflix, sourcing innovations by blockbuster, and the technological innovations brought about by advances in the distribution medium.
      View case

      Laastari: Building a Retail Health Clinic Chain

      By  Stephen E. Chick,  Ridhima Aggarwal
      Add to cart award
      This case study presents an example of business model innovation in the context of primary care delivery. It documents the story of Laastari, a new IT-driven retail health clinic chain based in Finland, including the process that links conceptual strategy to implementation and practice, as well as the evolving stakeholder ecosystem of the company.
        View case