Case 2: TOMS Shoes
You would have heard of the “Buy One Give One” (BOGO) model popularized by Toms Shoes.
Buy a pair of shoes, and a pair will be donated to a poor child in a developing country. This simple but powerful idea really resonated with the general public, leading to big commercial success for Toms.
Founded in 2006 by Blake Mycoskie, by 2012 Toms had distributed over 2 million pairs of shoes in developing countries around the world.
In 2014, Bain Capital acquired 50% of the company, at a valuation of over 600M USD.
However, impact assessments by experts raised several questions about the effectiveness of BOGO.
Please read the related articles and make your own assessment of the impacts generated by the Toms model.
© Hyun Shin, Hanyang University