TOMS Shoes' International Strategy (Chapter 7)

A company's international strategy is one that guides commercial transactions between companies in different countries. The goal of these plans is usually to achieve a company's overall objectives. The driving forces or motives for the early internationalization of TOMS Shoes are to put their products closer to the target market and to have the chance to grow and flourish in new markets. TOMS is a global footwear and lifestyle brand. Most of the Company's employees were in the Americas (primarily in the United States), with the remainder in Europe and Asia. The commercial manufacturing base, consisting of third-party contractors, is mostly in China and Vietnam. International expansion can expose businesses to a number of risks, including: political risks, cultural differences, regulatory risks, and economic volatility.

The disadvantages that TOMS had to endure by entering the international market include: out-competing local businesses, and some say the charitable act of donating shoes is a short-term fix that doesn't address the root of the problem. TOMS now had take on many other problems involved in new territories. The company soon found out their business model had to be changed. In addition to this, TOMS was in a highly competitive market with similar competitors and business models.