Pfizer Makes a Bold Move

In today's tough economic times we've seen many companies try to exploit America's weaknesses to enhance their declining business. Fast food companies in particular have tried to arise sympathy from the public by packaging special low-priced deals to make American residents feel like these companies are on their side.
We've seen KFC, Taco Bell and Mcdonalds put out their dollar-meal menus, all to spread the same message: "we know you're poor, and food is probably hard to come by, so you have no reason not to sacrifice your health and open up your checkbook to buy our low-priced junk food".

Now, however, Pfizer (a leading pharmaceutical company with a history of solid public relations for those not familiar) has one-upped all these offers. They have promised to provide over 70 different primary care prescription drugs to citizens at no cost as long as they have lost their job in 2009 and as a result have lost their health benefits (this according to a recent article in Advertising Age). Eligible members must have been taking the selected drug for at least three months prior to losing their job.

This is huge and brilliant at the same time. While the Obama administration spends their late nights trying to figure out what product to tax to be able to nationalize health care (soda was the latest idea), Pfizer has stepped up to the plate and given the government a hand during these tough times. Most importantly, the amount of attention and publicity Pfizer will receive for this move will most definitely drive their profit levels through the roof despite the fact that they are giving away free products.

This is a great example of leadership coming from a non-governmental source, so much so that Secretary of State Hillary Clinton has sat in as a contributor on many of Pfizer's town-hall style meetings regarding the health care situation.

This is what the United States truly needs in times like these. The government cannot do everything, and by stepping up to the plate and lending a helping hand, Pfizer is only improving its own image and standing as a health care leader in the US, a huge area of concern for a country that now finds itself with many different issues to worry about.

So props to Pfizer for both aiding the country while simultaneously building themselves up. Hopefully companies in other industries will follow suit (in fact some car companies have taken similar measures, picking up car payments temporarily for car owners who lose their jobs and can no longer afford the payments...more on that later).

What industry do you, if you are reading this, think can be the next to step up and execute a similar plan beneficial to a current problem the US is facing?

A Powerful Cardhouse Comes Tumbling Down

Both GM and Chrysler recently, with their operational troubles well-documented, have begun a series of mass downsizing efforts that have left hundreds of thousands of Americans unemployed. It will be very interesting to see what we can make of the car industry from here on out. Will the void left by these large auto companies simply be replaced by another up-and-coming company? Or might there be a David vs. Goliath movement of new, smaller auto companies trying to steal market share from these stumbling giants by selling fuel-efficient cars for low prices? We have already seen a similar situation in the airline business, where the Jet Blue's and Southwest Airlines of the world have seized a considerable amount of revenue from airline giants American Airlines and United Way during their times of struggle.

The Indian car manufacturor Tata has already unveiled their new Nano Car priced at a mere $2500 (http://www.smartcarofamerica.com/hybrids/tata%27s_new_nano_car/).
A similar version of the Nano, the Smart Car, has made its way here to the United States.
I'm not sure, however, that the American cultural ideology of "bigger is [usually] better", recession or no recession, will ever permit for such a small car to take over the industry.

Yet it will be interesting to see where these ailing companies go from here. I'd also keep an eye on the big "electric car" push being bred by the Michigan government, which recently awarded its local car companies hundreds of millions of dollars to begin constructing factories that produce lithium-ion batteries. The goal here is to eventually create cars that run on minimal fuel (below 3% of car's total energy) and instead use a battery to run on electricity.

Chrysler, one of our "powerful cardhouses" coming crashing down, has made a huge push towards electric cars, and plans to launch an entire new line of electric cars by 2010. That is, if they make it that far- according to CNN Money, Chrysler dealerships sold an average of 303 cars last year per dealership compared to Toyota's 1,292 per dealership.

Odds are, based on all the help these ailing car companies have been receiving from the government, that this will be a re-building phase and not a change in direction for the American Automobile Industry. Chrysler will already be backed by Fiat when they emerge from Chapter 11 bankruptcy (an initial 20% investment is expected). And GM, whether or not they choose file for bankruptcy, is already in talks with several companies about having a potential backer to help their re-structuring efforts as well... hopefully that might raise their stock prices a little, as they are currently sitting at $1.14 per share.

It seems the only group that really suffers here are these companies' hard-working employees, who are currently twiddling their thumbs (rather anxiously, I'd imagine) as they await a letter from HQ as to whether their dealership will have their contract extended past its 2010 expiration date.

Is there any silver lining in this entire ordeal?