Question

Please conduct a SWOT Analysis of Tom's shoes..= strength, weakness and threats.

Answer 1

TOMS is a well known company all over the world which sells shoes and eyewear for women,men and children. TOMS is known because for every pair of shoe it sells , it donates a pair of shoes or eyewear to a child in third world country. In 2006, Blake Mycoskie the founder of TOMS, went to Argentina and found that children did not have shoes and so he decided to donate one pair to a needy child for every pair he sells.

SWOT stands for strengths,weaknesses,opportunities and threats. Strength of TOMS is its one for one business model as the company sells one and donates one pair of shoes to a needy child.So children get a free pair of shoes till the age of 18.It has a good brand name and so can make profit.The company uses cheap production techniques and the rate of production is fast to meet the large demand.It provides jog to poor globally . It does not take the help of donations and advertisements because it has its profits to fall back on and so is free from corporate influence and corruption.

Weaknesses- It used the companies in China to produce the shoes which were of low quality and so its reputation was hurt.The poor countries are suffering from acute poverty and so providing shoes is only a temporary solution to this problem.So only the symptoms of the problem of poverty is taken care of and not the cause of poverty.The business makes less profit because it spends a lot in providing free shoes to poor children.The company gives more value to quantity over quality because it has to meet the demand of the consumers for cheap shoes.

Opportunities-The consumers spread about TOMS in social media.The consumers get influenced by its cause and so get inspired to buy shoes to help others.People get inspired to help people in poor countries like Argentina by giving charity.TOMS shoes is supported by other companies and non profit organisations to provide help globally to poor countries.

Threats-The local economies and local shoe businesses got hurt and has negatively affected the livelihood of shoe store local workers in different countries.So there is unemployment in different countries.Children become less self supportive and depend more on charity.This is not good as children will have to provide for themselves and depending on charity all the time , will destroy their capacity to support themselves independently.Another important threat is from competitors who often rob their ideas.Natural disasters come in the way of distribution of shoes and puts the lives of employees,factory workers and volunteers in danger.Government officials who are known for their corrupt nature, try to take advantage of the company.