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In the 1960s thalidomide, a popular new drug considered to be safe and effective, was revealed to cause severe nerve damage and birth defects in newborn infants, prompting health officials to ban the use of the drug and tighten overall restrictions on new drugs and drug use. Twenty years later, after recognizing the positive effects of thalidomide when treating patients with leprosy and its potential role in the treatment of certain types of cancer and cases of HIV/AIDS, the Celgene corporation would be forced to contend with stringent FDA regulations, liability concerns, public skepticism, and poor mass media portrayal in order to secure the drug's approval.

To illustrate how regulators are subject to political pressure, which companies much recognize and consider when making business decisions.

By late March 2014, the ridesharing company Uber was on a roll, rapidly expanding service to untapped markets and gaining new, enthusiastic customers, as well as a few vocal and visible detractors. Uber’s innovative organization of the supply-demand matching process produced eager customers who recruited others. Buzz marketing and aggressive recruitment of drivers augmented growth.

This case presents Uber as an example of a middleman adding real value for consumers and upstream suppliers (limo drivers). Unlike Tesla, which battled to sell cars directly to the public, Uber created value by adding a layer between limos and prospective riders, organizing the market for convenience and transparency for both sides. Where Uber stirred up the competitive equivalent of a hornet’s nest was with expansion from the livery car market into the taxi service market with UberX. The material allows for a lively discussion around disruptive digital technology and the firm’s business model.

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