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

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.