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How will U.S. consumers respond to the proliferation of alternative-fuel vehicles, such as cars powered partially or completely by electricity, in the coming decade? After a century in which fossil-fuel-powered vehicles dominated the market, it appeared consumers would have an unprecedented level of choice as to the type of car they purchased and drove. Automakers were introducing various models that used electricity for power, and other power sources, such as fuel cells, were also seeing increased attention. Some observers believed the time was ripe for widespread adoption of these new vehicles: consumers and policymakers were increasingly concerned about the fallout of U.S. dependence on fossil-fuel-powered cars-namely, adverse environmental impacts and reliance on foreign sources of oil, plus the fluctuating price of gasoline-and innovative infrastructure technology was being developed to support electric-powered cars. Despite these promising developments, it remained unclear whether consumers were ready to switch to alternative-fuel vehicles on a large scale. Would they be willing to make the lifestyle trade-offs required for grid-dependent vehicles? How should policymakers intervene, if at all, to encourage adoption, and what marketing activities and incentives might firms employ to stimulate demand?

Tengion is a young biotech company that is at the frontier of regenerative medicine; a nascent field that seeks to promote the creation of new cells and tissue to repair or replace tissue or organ function lost due to age, disease, damage, or congenital defects. In late 2008 Tengion management faces a difficult dilemma. In light of the financial crises, the company needs to manage cash burn by prioritizing its R&D efforts. CEO Nichtberger needs to recommend to the board which of two promising new medical treatments to keep developing while placing the other on hold. In comparing the two options, a host of factors need to be considered-- these range from assessing the regulatory challenges, manufacturing challenges, marketing challenges (in particular pricing), and partnering challenges. Each of the treatments would target a unique patient population, that differ in both size and composition. Tengion must also consider how quickly it might expect to bring each of the two treatments to market. The decision could have significant long-term implications for the company's ultimate survival and success.