]Case Study: TOMS One for One
1. What is the social value proposition for TOMS Shoes?
The name TOMS Shoes is derived from “tomorrow” was taken from the original concept “shoes for tomorrow.” TOMS Shoes has developed the social value proposition of the company off the One for One model and the importance of shoes. The One for One Model is for every pair of shoes bought one will be given away to a child in a developing country. The impact that TOMS is trying to make on individuals combines education and health in order to provide children opportunities in the future. They develop this for many reasons, one of which many children in the developing world live in areas with unsafe terrains so by providing shoes, they will reduce the injuries a child could get by walking barefoot. Also by providing shoes to the children, it will prevent a child from getting a disease that is transmitted through the soil. Lastly, they will be able to increase the education for the children they provide shoes for because a lot of schools require children to wear shoes. I think, to sum it up, TOMS Shoes social value proposition is that people will buy a pair of TOMS Shoes because it will help a child in a developing country gain more opportunities and increase their health.
2. Why did they design their business model around shoes?
I believe that they designed their business model around shoes for several reasons. It of course started with the experience TOMS Shoes founder Blake Mycoskie had in Argentina when he saw that many children couldn’t afford shoes and he discovered that he shoes that were worn by the locals (Alpargatas) were unique and comfortable. With that, there are a lot of health and educational value to having shoes. As stated in the previous question, having shoes will allow children to attend schools that have a requirement of wearing shoes. It increases their opportunity to be educated which over time will open up more opportunities for them in the future. Also, the ground in the developing worlds are usually unpaved and hazardous for children with bare feet so giving them shoes will cause less injuries to their bare feet. Lastly, there are many soil-transmitted diseases in the developing world, all of which are preventable by simply wearing shoes. When the consumer sees the benefits that the children will get from receiving the free pair, it will entice them to purchase a pair to give one away; the one for one model.
3. Discuss the relationship between the for profit and non profit organizational structure of TOMS
The TOMS Shoes for profit organizational structure deals with the overall logistics and operations of the business. Friends of TOMS is the non profit subsidiary that is responsible for all the volunteer activities and all the shoe drops. The way that the company is structured is that the Friends of TOMS subsidiary is incorporated within the TOMS Shoes One for One model which means, for every pair of shoes that TOMS sells, it donates a pair of shoes to a child on behalf of the customers. This creates what Mycoskie calls “Philanthropic Capitalism.” The incorporation helps the non-profit subsidiary stay sustainable because the sale of TOMS Shoes covers the cost of making the second pair of shoes and the air drop. On the other side, TOMS Shoes doesn’t have a marketing plan and relies on world of mouth, viral marketing and social networks. By having the philanthropic aspect, it increases word of mouth and increases the popularity among consumers. They even had a consumer survey which revealed that nearly half of the purchases were because of the philanthropic aspect. This shows that the for profit and non profit are interdependent of each other.
4. How does TOMS choose where to deliver the shoes?
This is the second part of their supply chain, they chose where they should distribute shoes to the children that need them. They collaborate with nonprofits to identify the children need. These...
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