TOM'S Entrepreneurial Strategy and Competitive Dynamics (Chapter 8)

Our reading dives into the importance of recognizing opportunities and the resources needed to make a company successful. Blake Mycoskie saw an opportunity back in 2006 to create a company that used the one-for-one business model and took the shoe industry by storm. An article from Forbes states, " TOMS’s purpose-driven business plan has led the brand to critical acclaim and financial success, selling over 86 million pairs of shoes as of 2018" (Mainwaring, 2018.) Startup capital, also known as startup funding, is essential for entrepreneurs to start a business because it allows them to pay for the expenses required to create and grow a business.

Mycoskie started TOMS Shoes in 2006 with a small investment and grew the company to over $300 million in revenue within six years. However, by 2019, TOMS was taken over by creditors who were owed about $300 million, and Mycoskie's remaining stake was wiped out. The company had a $300 million loan due in 2020 that it wasn't expected to be able to pay off.  The text mentions that a competitive action is one that provokes competitors to act in one way shape or form. TOM's competitive dynamics heavily rely on differentiation. Their social mission and commitment to innovation. This sets TOMS apart from competitors and helps build customer loyalty. TOMS also engages customers through storytelling that emphasizes the impact of their purchases, and uses social media to communicate