Toms : A Unique Business Model

Decent Essays
Since 2006, when the TOMS Shoes was founded, their ‘one for one’ business model has been widely embraced or criticized by different companies and the consumers. While, Blake Mycoskie, the founder of TOMS Company, was on trip to Argentina in 2006, he witnessed the extreme poverty and poor health conditions. After countersigning children walking barefoot, it dramatically heightened Blake’s awareness. Consequently, after witnessing those events, Mycoskie came up with a simple and innovating plan to create a for-profit business with a philanthropic component. Consequently, Blake created TOMS company with a unique principal and business model referred to ‘One for One’. TOMS ‘One for One’ is a unique business model, where for every pair of shoes purchased TOMS donates a pair of shoes to children in need in developing or underdeveloped countries. The company’s name ‘TOMS’ generated from the word ‘TOMORROW’, which was the original concept of the company, ‘shoes for tomorrow’. TOMS philanthropic concept is not just part of their brand, but it’s the core competency of the company. Their corporation culture of philanthropy and social awareness is a major factor for TOMS’s success and their value proposition cherished by the employees. Their unique and innovating business model is significantly different from competitors. Blake’s mission of changing the world and create sustainable funds for children in need turned into a business model and a core competency of the company.
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