Toms Shoes

Topics: Marketing, Business ethics, Marketing plan Pages: 4 (1562 words) Published: May 14, 2013
Although TOMS Corporation is profitable and well known, like all companies, they have many issues that challenges that affect their organizational outcomes. Examples of their issues and challenges include their one-for-one business model, minimal advertising, and the continuing amount of retailer complaints. There are also inadequate and poorly fitting elements of TOMS focal organization in the context of the changing environment. In order for TOMS to expand its brand and market share to its already successful business, they must find solutions to resolve these problems. TOMS believes that their one-for-one business model benefits people in third world countries, but many experts believe differently. TOMS one-for-one business model is based on giving a free pair of shoes away to kids in third world countries when someone buys a pair of their shoes. Cheryl Davenport of Mission Measurement a strategic consulting firm based in Chicago, stated “Instead of building the economies of developing countries, TOMS succeeds only to make consumers feel morally superior” (Davenport 2012). This suggests the goal for TOM’s business model is to make their customers feel morally superior. Blake Mycoskie didn’t take time to do any research on what the people actually needed nor did he talk to experts on a solution to get third world countries out of poverty. The TOMS one-for-one business model is currently facing many challenges that are threatening the business success. An article entitled “The Broken Buy-One-Give-One Model: 3 Ways to Save TOMS Shoes” addresses three problems with the model. The first problem challenges the fact if the model actually solves a social problem. Giving a free pair of shoes to a third world country is more of a short-term fix to a problem that needs long-term solutions in more important areas then shoes like developing the economy or education. The second problem is from a business prospective, TOMS Shoes is at risk. Research has shown there is...
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