Growing competitive intensity and international demand, more compre-hensive customer requirements, and higher market complexity drive more and more manufacturing firms to look for new ways of combining product and service business. Based on a case study approach, we analyze customer value creation in product-manufacturing firms by investigating value drivers from a supplier's perspective. We relate our investigation of value drivers to a taxonomy of product and service strategy combinations. Three strategy configurations are identified including differentiation and process-oriented services, cost leadership and operational services, and differen-tiation and research and development services.