I do not agree with the “one-for-one” business model because, as Andreas Widmer explains, it pushes local businesses out of the market, which ultimately holds back the local economy. Although Toms Shoes meant no harm when it first implemented this strategy, it did affect many local businesses, as they could not compete with something that was being bought for free. The “one-for-one” business model has been criticized by many reporting agencies, such as The New York Times, for “undermining local businesses by creating an entirely unsustainable aid-based economy”. Yes, people in these poor countries are receiving free items to help better their lifestyle, but they are in a no better position to afford these clothing items than they were in the first place. This causes problems with the local businesses – as they cannot sell their goods for free, and with the people of these countries – who still cannot afford to buy from the local businesses. Moreover, this business model ultimately raises Toms Shoes’ operating costs. They are producing two pairs of shoes for every pair sold – a business plan not optimal for producing a profit, but a policy that they have adopted in attempt to make a difference in less fortunate countries. While the idea behind Toms Shoes’ business plan meant well, it came with many hidden consequences, which negatively affect the surrounding local economies.

Sources

1. Davenport, Cheryl. The Broken “Buy-One, Give-One” Model: 3 Ways To Save Toms Shoes. N.p.: Fast Company, n.d. Web. 17 Nov. 2015. <http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes>.

2. Wadhams, Nick. Bad Charity? (All I Got Was This Lousy T-Shirt!). N.p.: New York Times, n.d. Web. 17 Nov. 2015. <http://content.time.com/time/world/article/0%2C8599%2C1987628%2C00.htm>

3. Wharton School of Business. The One-for-one Business Model: Avoiding Unintended Consequences. N.p.: University of Pennsylvania, n.d. Web. 17 Nov. 2015. <http://www.fastcoexist.com/1679628/the-broken-buy-one-give-one-model-three-ways-to-save-toms-shoes>.