TMOS Shoes: Strategic Analysis and Recommendations

TMOS SHOES

Executive Summary
IN the given case, a report has been prepared on the company TOMS. The business and the
products in which the company deals in has been explained along with the strategy of the
company. The report highlights the main strategic issues which have been faced by the company
off late and what are the possible remedies and the steps which were undertaken by the company.
The effect of the external environment as well as the industry situation has been explained in
detail through the use of Porter’s 5 forces analysis. The report also includes the explanation of
macro-economic variables and the financial analysis of the company using the ratio analysis and
its interpretation. The SWOT analysis explains the visible strengths, weaknesses, opportunities
and threats to the company and finally the recommendation and conclusion has been given
towards the end.

Contents
Contents......................................................................................................................................................3
INTRODUCTION.......................................................................................................................................4
STRATEGIC ISSUE...................................................................................................................................5
EXTERNAL ANALYSIS...........................................................................................................................6
COMPANY SITUATION...........................................................................................................................8
RECOMMENDATIONS...........................................................................................................................11
APPENDIX...............................................................................................................................................13
References.................................................................................................................................................16

INTRODUCTION
Blake Mycoskie, the man behind the foundation of the organization started the entity with
a view to establish a noticeable difference to those children who cannot afford to wear shoes. His
idea was to donate a pair of shoes to the needy as and when he sold one to his customer. His
intent was to help the poor of Argentina from disgrace and ill health arising out of several foot
infections (Alieid, 2016). Henceforth, by the end of the year 2013, the organization had managed
to donate about 100 lakh pairs of shoes in several countries. Thus, the mission of the
organization was not only to provide shoes to the children in the rural areas and suburbs of
Argentina from protection against feet infections but also to build their confidence and augment
community activism. It aimed to raise the living standard of the poor and the needy. Passing
through the challenging phase of recession in the year 2007 with unstoppable increase in
revenues accompanied with a decent increase in its workforce, the company had opened up its
chains at several new locations. It gained adequate appreciation from its customers and gained
popularity for its noble deed. TOMS had expanded also began to develop eyewear products with
its newest line with an intent to treat and cure the needy with eyesight illness.
With its unique mission and vision, the TOMS were able to attract influential investors
and thus, raise funds to fulfill its expansion needs significantly. With the passage of time, the
organization had shown substantial increase in its sales with an accompanying increase in its
workforce (Alexander, 2016). Since, it aimed to earn profit for a charitable cause; it initially had
to face several hardships to establish its foothold in the shoe industry. It had many competitors