Peer Response – 1 Apple Inc. is an exceptionally successful organization because of its keen ability to use extension strategies that not only lengthen the life of its product, but re-energizes it, giving each product a larger, extended consumer base with even more commitment. In a market saturated with similar products, Apple reinvents itself by implementing extension strategies, mostly in the form of introducing minor innovations (Chamber of Commerce of Metropolitan Montreal). Typically, when organizations implement extension strategies, it only defers the inevitable decline of their product because the redesigns are hastily developed and implemented. But Apple reinvents their product with intention; digging deeper into the product development phases of design iteration to ensure upgrades and added features are placed exactly where they should be. I believe Gateway quickly became a failing company when they decided to open retail locations that didn’t directly sell their products to consumers. Consumers want to walk out of a store with the item they came to look at. According to Harvard Business Review, “21% to 43% will actually go to another store to buy the item.” (Corsten and Gruen, 2018) While Apple Stores didn’t exist at the time, consumers could directly connect with Apple via phone to purchase a personal computer. Not only did Gateway lose money on the expenses related to brick and mortar locations, it lost significant business due to customers not understanding for what their stores were being used. Peer Response – 2 What makes Apple one of the most innovative companies worldwide? Apple is continually coming out with the most innovative and most wanted products, not only by consumers but competitors as well (Thompson, 2013). When Apple releases a new product, competitors are quick to release a similar product to the market. Apple remains one of the most innovative companies in the world, because they continue to innovate. They continue to release game changing products (Thompson, 2013). Products like the iPod, iPhone and iPad revolutionized the industry. These products changed the way consumers interact with electronics and Apple's competitors only follow Apple's lead coming out with products to compete with Apple rather than lead the industry. In terms of innovation why was Gateway a failure after initially being so successful? Gateway initially did well, because they gave consumers a way to directly purchase their product without having going through a retailer, which gave them control over their costs and enabled them to offer their product at a more affordable price (Leitao, 2002). Unfortunately, with the arrival of Dell to the market, Gateway was not able to compete with Dell's cheaper prices and more comprehensive services and products (Leitao, 2002). Gateway's innovative approach of direct to consumer sales helped them achieve success, however, this process was easily replicated by its competitors (Leitao, 2002). Dell replicated this process and was able to improve upon it and sell their product at a more affordable price, which caused the downfall of Gateway. 
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