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.