Case Study

Case Study: Recommendations for TOMS Shoe Company
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Case Study: Recommendations for TOMS Shoe Company
TOMS Shoe Company has achieved growth and expansion since its foundation. However, new trends and changes in both internal and external environments require that it change to not only survive in the market but also outshine others in the market. In a previous analysis, a handful of issues affecting TOMS were identified. Consequently, this study recommends strategies that can be used to address these issues. Such approaches are the adoption of a new for-profit business model and Corporate Social Responsibility (CSR), product differentiation, cost cutting methods and finding partners.
Table1 Showing the recommendations and the expected outcomes
Recommendation The Expected Outcomes
Develop a new for-profit business model and implement a Corporate Social Responsibility (CSR) program to continue with philanthropy. Increased transparency, integrity, and public trust.
Attracts potential volunteers and partners.
Increased productivity and profitability.
Improved brand image.
CSR program opens opportunities for the company to engage in environmental protection initiatives (Flammer, 2013).
Products and services differentiation. Reduced market threats through the development of unique products thereby reducing the likelihood of substitutes.
The improved competitive advantage in the market.
Improved customer loyalty and trust to the brand.

Improved customer satisfaction and value.
Cut the production costs through the use of cheap labor and local material. Reduce operation and logistics costs due to the use of cheap materials and outsourcing its processes in developing countries.
Increased scores in its charity programs due to increased employment in developing countries.
Low price products that will attract more customers.
New and innovative ways to market the products across their portfolio. Improved market coverage.
Increased sales. Theis will translate into high profits.
Attract many investors and stakeholders.
In brief, TOMS can achieve more market shares, productivity, and profitability by undergoing a change process. The process should involve development and adoption of the new business model, differentiation of its products, reduction of cost of production and finding new ways to advertise its products. Finally, inviting partners and volunteers can help the company reach and help many people.
References
Flammer, C. (2013). Corporate Social Responsibility (CSR) and Shareholder Reaction: The Environmental Awareness of Investors. Academy Of Management Journal, 56(3), 758-781. doi:10.5465/amj.2011.0744