Fred Harvey and the Santa Fe Railroad’s Brand extension strategy to develop Southwestern tourism in the USA in the early 1900s

Abstract

This study employed an abductive inference approach to review and assess the critical influences in a brand extension strategy execution based on a historical example. It reveals the drivers of and impediments to success in executing a brand extension through an in-depth observation. The strategy was executed in a joined brand extension into tourism by USA’s Fred Harvey Company and the Santa Fe railroad (AT&SF) in the early 20th Century. The strategy was a success until an unforeseen economic crisis crippled the tourism market. Following the abductive approach, this historical example reveals the importance of extending current theoretical models to include the environmental context in the critical success factors for executing a brand extension strategy. This robust historical example adds new insights into the development and execution of a brand extension strategy over time-based on actual events. Equally important, this historical assessment reveals the previously under-discussed significance of innovation champions in forming and executing an extension strategy.