TOMS Shoe's Corporate-Level Strategy (Chapter 6)

The purpose of a company's corporate-level strategy is to maximize its profitability and maintain its financial success in the future. TOMS corporate-level strategy consists of a blend of differentiation and a focus on corporate social responsibility rather than a traditional low-cost or best-cost strategy. Our text states, " Market power reflects the firm's ability to profit through restricting or controlling supply to a market or coordinating with other firms to reduce investment." One of TOMS' most successful marketing strategies involves building emotional connections with customers. When its comes to its partnerships, TOMS established a partnership with resale platform ThredUp this spring which will allow Toms customers to sell or recycle their items for store credit. 

This new model is evidence of a shift in the giving strategy of the brand, which launched in 2006 with a ‘buy-a-pair-give-a-pair’ strategy. Toms transitioned from its initial one-for-one model in 2021 to its more flexible giving plan, where it donates a third of its profits to charitable causes, many of which focus on boosting access to mental health resources.

Another thing our texts notes is the importance of restructuring. It says, "Restructuring involves the intervention of the corporate office in a new business that substantially changes the assets, capital structure, and/or management..." The one-for-one model, which was part of what made Toms famous, proved difficult for the brand, which skirted away from near bankruptcy in promote awareness of its charitable shift, Toms purposefully made its resale announcement in May, during Mental Health Awareness Month.