Many institutions have used the triple bottom line as a sustainability technique to support their goals (Slaper and Hall). For instance, Toms and Recology Inc. can have a competitive advantage based on the triple bottom line approach since it subscribes to the three Ps of the procedure. When the company sells a pair of shoes, it gives back to society by donating another pair to the needy people in different parts of the globe, thus ensuring that their lives are improved. Additionally, when it produces eyewear, part of its profit is used to restore the eyesight of the needy people in developing countries. Recology Inc., on the other hand, saves the environment by managing waste that could otherwise be harmful. It has also built a resource ecosystem that sustains the community. Toms Company will be able to make more profit from the brand image it will have established through the strategy it employs. More customers will buy its products knowing that part of the proceeds goes to the less fortunate, and thus, earning the company more profit. By avoiding the ultra-competitive urban market, Waste Connections will be able to avoid competition and hence, make profit from less competitive markets. Recology Inc., on the other hand, will bank on the brand image and the reputation it will have attracted from the community from the projects it will have introduced to the community to get more customers for their products and earn more profit as a result.
A core competency is essential in creating a competitive advantage which will help the firm break into new markets (“Core Competencies”). Toms’ core competencies are contained in the way that it gives back to society in every sale of its products. The fact that the company has a model that each product sold has the potential of assisting a needy person is one of its strongest competencies and will draw customers to the firm. Customers are attracted to a course that leads to helping society, and this will grow the firm’s brand image. Through this strategy, the company can achieve high employee retention which makes it sustainable in the long run.
Toms has a better competitive advantage that is aimed at serving the public while, at the same time, earn a profit. The main power that it gains is a higher customer and staff retention. Customers and staff will be happy that by associating with the firm, they are helping the needy in the process and thus will stick with the company. By maintaining its customers, the company ensures that its sales are high and with the company’s brand growing from its business approach, its profit margins would rise. Therefore, this makes it difficult for competitors to compete with the firm and they will need to understand the method that Toms uses for them to employ it to match their advantage. Unfortunately, this would take a long time for the customers to identify with their brand.
Toms Company employs the use of Tripple Bottom Line strategy to gain a competitive advantage over other firms in the industry. This strategy ensures that it earns the company a high profit while, at the same time, the company gives back to society. This is an effective strategy that will enhance the growth of the institution’s brand image and better its profit margins while retaining its customers. I would not recommend any changes to this strategy since it will help differentiate the company from its competitors while, at the same time, earn it profit. This strategy is beneficial to the company and society.
“Core Competencies.” Bain, 2018, https://www.bain.com/insights/management-tools-core-competencies/.
Slaper, Timothy F., and Tanya J. Hall. “The Triple Bottom Line: What Is It And How Does It Work?”. Ibrc.Indiana.Edu, 2011, http://www.ibrc.indiana.edu/ibr/2011/spring/article2.html.