What question did this study set out to answer?

This research aims to clarify and provide a typology for Physical Products Subscription business models in the home appliance sector.

May 10, 2026

A Study on the Conceptualization and Typology of Physical Products Subscription Business Models: Focusing on Servitization Level and Scope of Value Chain Activities

Key Points

This research aims to clarify and provide a typology for Physical Products Subscription business models in the home appliance sector.
In-depth interviews with industry experts
Identification of five key differentiators
Classification of eight major Korean firms into a typological framework
Proposed a typology based on servitization level and value chain activities
Identified five differentiators enhancing understanding of subscription models
Provided strategic guidelines for resource allocation among firms

Abstract

This study clarifies the concept of Physical Products Subscription business models by distinguishing them from traditional rentals in the home appliance market. Through in-depth interviews with industry experts, this research identifies five key differentiators and proposes a typology based on two core dimensions: (1) level of servitization and (2) scope of activities in the value chains. By classifying eight major Korean firms into 2x2 four distinct types, this study first offers a key theoretical framework that makes rental or subscription models more clearly distinguishable in the segment of Physical Products Subscription industry, and provides strategic guidelines to optimize resource allocation for those companies.

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