The primary goal for every organization is sustainability, and each institution should work hard to ensure that it achieves this objective. There is a set of traditional ways of measuring the performance of a company, and these include shareholder value and return on investment (ROI). However, a more comprehensive method of measuring this performance has been introduced, which incorporates the three Ps. It focuses on the People, Planet, and Profit and it is known as the triple bottom line. This is a sustainability approach that has been employed by various institutions to support their goals (Slaper and Hall).
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 a pair to the needy people in different parts of the globe. 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.
A core competency refers to that deep element of a company that allows it to provide its customers with a unique value. It substantially contributes to what a company’s product offers to its customers. Also, it 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 the society, and this will grow the firm’s brand image.
Sustainable competitive advantage is critical to the success of every business. This is a force that enables a company to attain more focus, better profit margins, higher sales, and higher staff and customer retention as compared to its competitors (Peskett). Toms has a better competitive advantage that is aimed at serving the public while, at the same time, earn a profit. The main advantage 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.
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/.
Peskett, Marc. “Five Steps To Get A Sustainable Competitive Advantage – Smartcompany”. Smartcompany, 2018, https://www.smartcompany.com.au/business-advice/strategy/five-steps-to-get-a-sustainable-competitive-advantage/.
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.