When Toms’ one-for-one business model first came to the pubic, most of the people were impressed by this innovative approach to help the poverty. By doing so, the company not only differentiates the shoes selling to the consumers but also labels it as an entrepreneurship that is enthusiastic to solve the poverty problem around the world. Toms adopted one-for-one business model with a good will but the approach Toms implementing it shows a lack of foresight. Due to the large amount of unintended consequences, I oppose this kind of one-for-one business model.
One thing that one-for-one business model does well is creating a relationship with the consumers and the people they are going to assist. People feels good when they buy a new pair of shoes and know that there is a person in the world will get a pair of shoes for free because of it. In fact, most of the consumers do not care much about what specific thing the company will donate to the poverty. What they care most is the outcome. In other words, consumers will be willing to purchase no matter the company will offer a pair of shoes or donate to the charities once they see the outcome of these actions.
I have to say that one-for-one business model dose a good job to attract customer, but the simple way only to offer a pair shoes is far from helping the poverty. This is reason why I disagree with the one-for-one business model. It needs to carry out a more proper way to help the poverty. Otherwise, consumers will gradually be disappointed with the brand.
Article:
http://www.forbes.com/sites/jamespoulos/2012/04/11/toms-shoes-a-doomed-vanity-project/