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.