Toms Business Model Case Study

1383 Words 6 Pages
TOMS is an organization that has grown exponentially with each new product they add. They became a household name in less than 10 years, but strive to conquer markets outside of their initial product, shoes. Their 1-for-1 giving model encourages people to give to their cause by purchasing their products, while allowing them to see how they help others with each purchase. The blog they keep allows customers to see growth by highlighting employees, special products, and stories of the people they encounter. They also have links on their page that keep a tally on the businesses they contribute to, as well as jobs they support, and the countries where their shoes are produced. There are so many links on the page making the company’s actions …show more content…
The creator, Blake Mycoskie competed in the popular game show The Amazing Race in 2002, but lost by just four minutes. He wrote a book that followed the creation of the TOMS company and entitled it How I Did it: The TOMS Story. Argentina was one of the stops he and his partner made along their journey. Years later he chose to return and immersed himself in the culture. Mycoskie was inspired while on his journey by the national shoe: the alpargata. He saw the potential market appeal the product may have in America, but chose to develop the idea further before trying to sell it. Towards the end of his trip he encountered a woman holding a shoe drive and wanted to help, but in a way that would facilitate continual financial help for those in need versus traditional donations. He then founded a for profit company that would help provide shoes for children as well. The shoes originally were called “Shoes for a Better Tomorrow”, but eventually the name evolved into the brand …show more content…
Alejo, Mycoski’s Argentinian polo teacher partnered with him and volunteered the space so they could have enough to share with people and pitch their idea to potential buyers. Eventually American Rag picked the idea up with the intention of selling both the shoe and the story. Booth Moore a popular fashion writer helped spike the demand for the shoe with an article she wrote for the Los Angeles Times. The idea of 1-for-1 giving was easily sold to the public, but Moore’s article made it public knowledge. Initially the small company had a hard time meeting the demand that the article sparked, but the mission behind the company prevented people from cancelling. Mycoski then decided to expand the company by hiring interns. The story was then picked up by Vogue, but production at the time was still in Argentina. Other big name magazines continued to circulate the story increasing demand, but the company still consisted of three interns and Mycoski working out of his apartment. Celebrities were spotted wearing forty dollar canvas shoes that were being featured in magazines. 10,000 pairs of shoes were produced the first

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