Modulization in the service industry : a case study on modulization tendencies in the Norwegian package tour market
Abstract
The thesis argues that Norwegian package tour companies follow a path towards
modulization of their service offerings, meaning that a service is divided into smaller
standardized parts so that the customer can put together his own version of the service. This
approach solves the dilemma between rationalizing service production, especially massproduced
services, and offering the customer individual choices to satisfy their needs and
deliver added value. The thesis will also argue that innovation is entwined with the changes
relating to modulization, and that it is imperative for service companies to embrace
innovation as a part of their transformation. The modulization theory is taken from Jon
Sundbo’s article: Modulization of Service Production and a Thesis of Convergence Between
Service and Manufacturing Organizations (1994). The results show that the case companies
clearly follow trends leading to modulization and are in the advanced stages of applying it to
their service products. This trend is likely to continue and be gradually applied to all their
product offerings in the future.