1 a) How did Harley dominate the US industry historically

Historically, Harley-Davidson managed to dominate the US market by correctly identifying its strengths, weaknesses, opportunities and threats and understanding the environmental factors that influenced the industry that it operates in (Figure 1 and Figure 2). By utilising its strengths to maximise the opportunities presented to the company, Harley-Davidson was able to implement a succession of affective strategies, allowing it to capture 60% of the motorcycle market and subsequently became the market leader in the late 1950s.

In the early years, the company attracted customers and established brand credibility by utilising the ‘victorious’ and ‘sporting’ brand image of one of its founders, Walter Davidson. The company understood its customers need for a product that can be fixed at home and therefore, was able to fulfil this need with its pioneered V-twin engine innovation. In addition, Harley-Davidson invested in R&D, focusing on improving the quality and reliability of its machines, building on its strengths and therefore was able to charge a premium for its motorbikes. This, in turn assists Harley-Davidson to acquire its prestigious, luxury brand image and achieved a cult following. In doing so, Harley Davidson was able to increase its market share, despite a sagging economic environment of the 1920s. When sales declined in the 1950s, the company relied on its innovations as a point of differentiation and built on its established strengths (‘raw power’ image) to attract additional customers. Harley-Davidson also understood who its customer base was, realised the powerful impact that correct celebrity endorsement had on the its success and therefore, continued to do so by enlisting the support of celebrities who embodied Harley’s tough, rebel image as well as enlisting government support. This