Case 6: TOMS Shoes: Expanding Its Successful One for One Business Model Introduction Blake Mycoskie, an...

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Case 6: TOMS Shoes: Expanding Its Successful One for One Business Model Introduction Blake Mycoskie, an American entrepreneur, author, and philanthropist, while on a trip to Argentina in 2006, witnessed the children struggling without footwear and decided to act on it. Blake was inspired to do something more sustainable than a one-time charity and provided a permanent solution; that is when TOMS, a for-profit company, was founded. TOMS aimed to give shoes to these children throughout their childhood. They worked on a "one for one" strategy, and by 2018, they had distributed more than 75 million pairs of shoes to children in over 70 countries. TOMS saw sustainable growth throughout its years of operations, and by 2015, it was a fully running organization with 500 employees and $400 million in revenues. Not only was TOMS selling its shoes in major retail stores in Nordstrom, Bloomingdale's, and Urban outfitters, but it also expanded to developing eye wear products to cure sight-related illnesses. However, the footwear manufacturing industry was very competitive, and to differentiate itself from the competition, the firms needed to present their products on multiple levels. Therefore, product innovations and advertising campaigns became popularly used by firms. For example, Nike and Skechers actively marketed their athletic footwear image, whereas Clarks promoted a more sophisticated design, appealing to a wealthier target market. TOMS on the other hand functioned on limited finances and therefore used a grassroot approach using social media and word of mouth advertising strategy rather than hiring celebrities like most of the other brands. Eventually, TOMS social media presence was more than some of the giant names in the industry. Along with functioning successfully, TOMS was also actively engaged in its corporate social responsibility activity and environmental sustainability. TOMS plans on expanding its product offerings as its future goal. 1. What strategic issues should Bain Capital investors and new TOMS Shoes management be most concerned with? Are there possible improvements to its competitive strategy? Are there internal weaknesses that can be resolved to improve its well-being? 2. CONCLUSION Case 6: TOMS Shoes: Expanding Its Successful One for One Business Model Introduction Blake Mycoskie, an American entrepreneur, author, and philanthropist, while on a trip to Argentina in 2006, witnessed the children struggling without footwear and decided to act on it. Blake was inspired to do something more sustainable than a one-time charity and provided a permanent solution; that is when TOMS, a for-profit company, was founded. TOMS aimed to give shoes to these children throughout their childhood. They worked on a "one for one" strategy, and by 2018, they had distributed more than 75 million pairs of shoes to children in over 70 countries. TOMS saw sustainable growth throughout its years of operations, and by 2015, it was a fully running organization with 500 employees and $400 million in revenues. Not only was TOMS selling its shoes in major retail stores in Nordstrom, Bloomingdale's, and Urban outfitters, but it also expanded to developing eye wear products to cure sight-related illnesses. However, the footwear manufacturing industry was very competitive, and to differentiate itself from the competition, the firms needed to present their products on multiple levels. Therefore, product innovations and advertising campaigns became popularly used by firms. For example, Nike and Skechers actively marketed their athletic footwear image, whereas Clarks promoted a more sophisticated design, appealing to a wealthier target market. TOMS on the other hand functioned on limited finances and therefore used a grassroot approach using social media and word of mouth advertising strategy rather than hiring celebrities like most of the other brands. Eventually, TOMS social media presence was more than some of the giant names in the industry. Along with functioning successfully, TOMS was also actively engaged in its corporate social responsibility activity and environmental sustainability. TOMS plans on expanding its product offerings as its future goal. 1. What strategic issues should Bain Capital investors and new TOMS Shoes management be most concerned with? Are there possible improvements to its competitive strategy? Are there internal weaknesses that can be resolved to improve its well-being? 2. CONCLUSION