It is hard to find people who willingly want to make the world better. It is an even harder find to separate social entrepreneurs who are willing to do good but also make a profit on the side. Social entrepreneurs have the task of dealing with a lot of work related stress and all at a cost of nothing. Yet, in the end, the task of giving back free of charge is something to be proud of. One person who knows what exactly will come out of making the world a better place is entrepreneur Blake Mycoskie.
TOMS Shoes has been built up into this remarkably strong brand that is known to be associated to social good. However Blake did not start off with an incredibly good company. As any entrepreneur will tell you starting your own company takes some time and according to Blake it took him four start-up companies and one trip to Argentina to realize his calling. As a volunteer at a shoe drive he had this idea of selling comfortable shoes and implementing this “buy-one-get-one” sale. This type of marketing and sales plan boosted TOMS shoes sales up 10,000 units in its first year and by 2010 they reached as much as 1,000,000 donated shoes.
Of course all of Blake’s success came with some issues of social responsibility, management in global environment, and sustainability. There are a set of forces and conditions outside an organization’s boundary that affect the way TOMS shoes operates and shape its behavior. These forces such as change over time and Blake is faced with opportunities and threats. These threats can come from other companies that thrive in the shoe industry such as Nike. Another task that Blake has to deal with is finding oversea suppliers that offer the lowest-priced and highest-quality products. Once Blake faces this important task the whole global outsourcing concept is easy to manage and will result in maximum profit.
To conclude, TOMS shoes does not have an issue in terms of sustainability and that is simply because their customer base is committed and more than pleased with the company image and brand. TOMS goods and services have proven that in a world where many business elites are concerned with making a profit there are those who are still willing to better the world. In Blake Mycoskie’s terms it is one shoe at a time that will make the world a better place.
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I have seen TOMS shoes increase just dramatically in the city. From seeing them once in a while Freshman year to now being in my Junior year I see them everytime I walk out the door. I think this shows that an idea like this works and it is a almost a triple win, TOMS wins, the buyer gets great product, and there is a donation made! Great business model TOMS has created and I am sure TOMS will continue to do very well. Although I have not purchased a pair yet, I maybe would buy a pair as a gift for a cousin.
I have not heard of Blake until two years ago when I was shopping at Macy’s for a casual suit. I walked by the shoe department and saw these banners for TOMS and how if you bought a pair, a pair would be donated to the needy. I believe that Blake Mycoskie took the right path of entrepreneurship and found the right type of target market (which is the community of America) As it is stated in the operations management textbook, “If operation managers have a moral awareness and focus on increasing productivity in a system where all stakeholders have a voice, then many of the ethical challenges will be successfully addressed.” (Pg.20 of Operations Management, Heizer and Render) I want to conclude that Blake Mycoskie’s perspective and moral awareness brought his company success in many dimensions of his business. I feel like when a business gives back to the worldwide community that they will succeed because the consumers of today’s era a more conscious about the issues and predicaments throughout the world.
Individuals buy TOMS for a multitude of reasons. Their variety, comfort level, and their giving to those in need aspect. As the increase in purchases of TOMS continues to grow Black will continue to be faced with many threats. However, from the buyers eyes TOMS is a unique we to give back to those less in need and at the end of the day Blake, the consumers of TOMS, and the receivers are all happy. Although there is other shoe competition our there, TOMS are a in a league of their own in my eyes. No other shoe company that I know of does the “buy one get one sale”. Other shoe companies may see TOMS as a threat but until they start implementing this idea I don’t see TOMS as having much competition out there.
I think the concept of TOMS BOGO (buy one give one) is great in theory, but in reality I have a difficult time really backing the cause. TOMS are made in China, Argentina, and Ethiopia, so I would like to know how a company based in the U.S. manages to ensure that its manufacturers are ethically operating facilities with sound labor conditions and appropriate pay. I think we’re all familiar with the negative press Nike has received in recent years, and I can’t help but wonder how TOMS is doing things differently.
I support TOMS shoes and value Blake as a successful entrepreneur. I purchased my first pair of TOMS about 7 months ago, after they became a client of my company and I was offered a 30% discount. I understand that with one purchase he needs to create another pair for donation, but then how much is he keeping for profit? As the comment above me suggests, the shoes are made in countries with very cheap labor yet my cloth TOMS cost almost $50! I would be very interested in looking at his revenue and expenses statements to see his margins.
I think that your blog asks two really important questions when it comes to producing a manufactured good at high quality, low cost, and we’re assuming a low profit margin. The first question that you raised is competing in a global market, with high competition, and changing trends, asks how could TOM’s compete if his marketing strategy includes BOGO deals without cheap labor sources and materials. This leads into the next question of how ethically responsible is TOM’s in the oversight of the production of the TOM’s brand of shoes if they are manufactured in countries with loose labor regulations and oversight. TOM’s shoes on paper sounds like a really good idea on paper, but until you really see how the company operates internally I would be skeptical about how exactly the company is run.
I love what Blake has created in building a company that helps others in need. The concept of buying a pair of TOM’s and having a pair go to a child in need is great,but I am also skeptical on how the company is running internally. I agree with many of the people above who mentioned that TOM’s are being manufactured in countries where labor laws are not strictly monitored. This is something to be concerned about. Though they are trying to do something good, if they are not treating their labor properly then ethically there is a flaw. I would like to know how many shoes the company to date has been able to give to those in need.
It is incredible how quickly demand for these shoes grew. It seems like out of nowhere that people really got into these and then they popped up everywhere. It is nice to see that for every pair that an individual buys, one is donated. This donation is a big portion of the shoes popularity. Not only do they look fashionable, the buyer gets to feel good about him or herself as they helped a person in need. I am interested to see if more new companies in the future might establish based on this idea of helping out the less fortunate.
I actually went to high school with Blake. I was still in high school when he first founded TOMS shoes. Because the founder of TOMS shoes was local, they were very popular locally. However, they were not as popular in other parts of the country. I have actually been able to see the growth and sustainability of TOMS shoes from the beginning. When I first moved to Chicago, there were not as easy to find and purchase. Then, I would see more and more stores begin to carry them. Now I see tons of people wearing them. I think people like them for a variety of reasons which is why I think TOMS shoes is very sustainable. People will buy them for the style, or because of the good things that they do for the children, or because of a sort of peer pressure factor. Another reason that they are sustainable is because of the low price of manufacturing them. There are very cheap to make and are sold well above that price. Because of they are able to afford to donate shoes. People will pay that price to again for the same reasons; style, charity, and peer pressure.
I think in our world today, it’s great to know that there are businesses out there that want to better the world. When I first saw TOMS appearing on people’s feet I wasn’t too impressed. They aren’t the best looking shoes but I will say that they are comfortable. I didn’t get my first pair until this past January and one of the main reasons I wanted a pair was because of this idea of “one for one” that Blake has marketed and promoted his product with. I strongly believe that TOMS shoes are as popular as they are because of this idea that consumers can give back by purchasing shoes that they may not even necessarily need. However, this idea of one for one isn’t liked by everyone. I came across an article that was against the campaign because TOMS was actually making a profit. (http://www.buzzsawmag.org/2011/11/02/why-i-hate-toms-shoes/). However, even after reading the article, what the author failed to realize is that Blake is an entrepreneur but instead of being greedy with his profits, he is using it for good and that’s why I support TOMS.
I personally and proud of Blake for coming up with such a business idea. Not only are the shoes comfortable and stylish, but they also support a cause! How great is that? I support TOMS 100% and always will. They even came out with a eyecare line with the same One for One model. For every pair of sunglasses purchased, TOMS will provide a pair of prescription glasses to a child in need.
I really like the concept of TOMS “One for One.” You buy a shoe from TOMS; they give a shoe for “child in need.” By making the profit, company also gives to charity. Not only the concept of “one for one,” TOMS also offers customer a variety of colors and patterns. I remembered two years ago when my friend was introduced to me toms shoes, it look really cute and comfy. She has bought couple more after a few months, and told me that because she wanted to see the better world. I am sure that TOMS created a powerful business model that will keep them sustainable growth.
I think that Blake’s business succeeds because it has an excellent business model. As a for-profit business, it was arguably one of the first companies to have such a drastic charitable model. Donating a pair of shoes for every pair bought, a one-for-one model was virtually unheard of. They were not only for a great cause but they are also very stylish and extremely comfortable. This helped gain a huge customer base of very brand-loyal fans. As a consumer, I would prefer to buy a pair of Tom’s knowing that another pair would be going to someone who doesn’t have shoes. More companies ought to follow a model closer to Toms.
As a big fan of TOMS products, I have to say TOMS starting point as a shoe manufacturer as well as charity organization is amazing. First of all, TOMS attracts its customers by its shoe design. TOMS shoes are very simple and confortable. TOMS creates its own product image and represents its own special shoe style. Second, as many other shoe manufacturers do, TOMS outsourcing its producing sector to Asia to reduce the cost of its products. In addtion, TOMS shoes are made of linen, which is very cheap and clean materials. Third, and the most amazing characteristic, Blake’s great idea of “one-for-one”. The company is doing charity at the time they are making profit! Not like those companies only make some donation time to time to show their social responsibility, TOMS is actually being a charity organization diliverying “love” to those who needed. Customers are willing to buy TOMS products because they know they are satisfying themselves as well as helping people. This legendary idea of entrepreneur will help TOMS reach a higher peak as long as they can managing their business well.
Tom’s is a unique and inspiring case, in that it is a fully sustainable and for profit firm with a mission that states, “For every pair purchased, Tom’s will give a pair of new shoes to a child in need”. It seems that from the article and the comments, most people understand the idea to an extent. I’ve also seen that the post and comments raise a lot of questions. Questions like where does the money go? What kind of labor conditions are the shoes made under? How do you know where the money goes or how it’s used? These are all awesome questions, and it’s great to see that people are thinking and actually caring about this information. Now, I encourage you to go look up this information and find the answers from other articles and from the Tom’s website and then develop your opinions about the idea and the company and how successful or unsuccessful Blake Mycoski has created sustainable business. Here are a couple links http://www.toms.com/our-movement/movement-one-for-one. They even have a “Giving Report” on their website that reports all the facts about their operations and if you still have questions after that, email someone at Toms. Make sure your question and what you care about is heard.