The TOMS Shoes Business Model

TOMS Shoes is a company that began with the mission of providing shoes for those who need them in third world countries. The model for the company is that, for every pair of shoes sold, TOMS Shoes will donate one pair to needy people who live in countries outside of the United States. This has changed many companies to look at that the way that they conduct business. Organizations are beginning to realize that a company can have a larger impact than the world of selling. TOMS Shoes is about a company embracing new thought patterns that go from being an entrepreneur to also being a philanthropist. The effect companies such as TOMS Shoes has on the baby boomers, generation X, and the millennials might be quite surprising.
People typically respond differently to charities. For example the baby boomers generation were more likely to be a part of charities. According to a survey …show more content…
This has led commentators and many others to have mixed emotions about it, “Critics worry that cause-related marketing is more a strategy for selling than a strategy for giving-that ‘cause-related marketing’ is really ‘cause- exploitive’ marketing,” (Kotler & Armstrong, 90, 2016). This can create a host of problems for many companies, especially those who are wanting to join in this “do-good” approach for business.
In the case of TOMS Shoes, it is pretty clear that the company has experienced huge growth and will continue to. When handling such a controversial issue, TOMS Shoes does not stray away from its original mission. The company is growing due to their consistency. When it comes to facing controversy, TOMS Shoes is very transparent with answering questions asked by the public. When a company, such as TOMS Shoes, is faced with controversy, transparency is paramount. Such a controversy can be what is known by the expression as a two-edged