TOMSShoes stands as one of the most philanthropic for profitorganizations, with its “One-for-One” philosophy.
Inaddition, TOMS have successfully tapped into the helping style of theWestern world.
TOMSenjoys an inspiring company story by its founder whose name issynonymous to the TOMS brand.
TOMSproduces deep core products as it uses different fabric choices forthe same shoe style.
TOMSis an ethical company focusing on ethical practices from both itsemployees, suppliers and distributors.
Thecompany has been able to make good use of social media advertisement.It has over 2 million followers on Twitter and a similar number oflikes on Facebook. This places the company ahead of others in termsof online presence which is the trend in the contemporary marketingworld.
TOMShave built concrete relationships with its Giving Partners who arereputable. This way, they have helped convey the company’s messageat no extra cost. The company saves a lot in advertisement which isused in product development and to stay true to its mission.
TOMShave a small product line. The company only manufactures shoeswhereas its competitors like Nike and Adidas have a broad range ofproducts. This places TOMS at a disadvantage in the highlycompetitive industry.
TOMSis a new company that is not well established. It was started in 2007and it is not even widely known like the other brands in the industrylike Nike, Adidas and Clarks.
Thecompany has done very little advertisement relying mostly on word ofmouth or story telling through the buyers and its Giving Partners.
TOMSshoe donation is potentially harmful to business selling shoes incountries receiving donations. This may create a negative attitude orrivalry from other companies.
TOMSdoes not have reach to the global population. From lack ofadvertisement and concentration on the U.S market and donations oncertain countries has led to poor reach on to the global market.
Givingshoes appears to not solve the problem facing the recipients, butonly puts a band aid on the problem.
TOMSis the first for profit organization to do charity work of suchextent in its “One-for-One” philosophy. The philosophy is fullyengulfed in the company’s mission and not just a public relationsmatter.
Theshoes market still remains large. TOMS can expand its market niche byselling products world over like its competitors and still maintainits philanthropic philosophy.
Inaddition, TOMS has an opportunity to expand on its product line.Since it is already doing well as a brand, introducing a broadspectrum of products will enhance its revenues and profit margin.
Themoney spent on giveaway shoes, which to critics is not a solutioncould be used to find a more permanent solution to the populations.
Theshoe industry has stiff competition from well established companiesincluding Adidas and Nike.
Sincethere is little advertisement on TOMS products, people who are notfamiliar with the brand may learn about the company from critics orAnti-TOMS who cite TOMS practices as taking away business from localshoe manufacturers.
Thetrend of doing good may fade away with time as public is usuallyunpredictable. This could hurt or damage TOMS business.
WayForward For TOMS
Fromthe SWOT analysis, TOMS can learn a few things to help it moveforward. First, the company needs to pull out from its currentphilosophy of giving out shoes and look into an alternative ofhelping the needy children. This will help eliminate criticism andAnti-TOMS campaigns.
Secondly,the company can expand its line of products to be able to increaseits market and products. It also needs to sell its products worldover through online distributors like its competitors Nike andAdidas. This will make it a global brand.
Finally,advertisement is an important marketing tool and TOMS cannot ignorethe power of advertisement and succeed. Therefore, the company mustinvest significantly in advertisement to make a break through.