What are the key elements of TOMS’ shoes competitive strategy? Is the
strategy best described as low cost, differentiation, or best cost? Has the
company focused on a niche or chosen to pursue the broader footwear
market? Explain.
The key elements of TOMS’ competitive strategy are its unique and innovative
business model which incorporates both profit and purpose. Initially the idea was to simply
create a full profit making business, but then the famous “One for One” concept was
integrated as part of the business model. The one for one idea involves having a customer
purchase an item and with the same transaction, someone in need will be assisted. This
integration boosted the organization’s corporate social responsibility image as it is the main
attraction for customers. The effectiveness of the strategy is further emphasized by the fact
that the charitable donation is built into the product. This strategy promotes the idea that the
customer is in charge of the charity, in that their purchase drives the charitable donation thus
enhancing customer satisfaction for promoting a cause. When interviewed by Forbes, the
founder of TOMS indicated that giving the business model consideration is very important
especially in areas such as advertising and marketing. Interestingly, while other organizations
spend excessive amounts of money on such areas, TOMS’ approach is that the customers are
