Product Service Systems in the Sports Industry: a Framework for Classification and Innovation in Product-Service Systems

The growth in product service systems have provided manufactures with a range of new opportunities, but also challenges of meeting individual customer demands in a cost-efficient manner. The arguments for moving into services have been opportunities for differentiation, but findings on the profitability of servitization strategies diverge. This paper presents a framework for classifying and developing services for manufacturers in the sports industry. A taxonomy has been developed along two dimensions: degree of added value to the customer, and degree of distinction and innovation. Based on this, four possible strategies are presented for how to develop product service systems. Further, a classification of services is made, based on findings from 42 companies in the sports industry. The paper concludes by presenting research challenges for service innovation based on a newly initiated research project with a sports equipment manufacturer.