What Are Target's Fixed Costs?

809 Words4 Pages

Target Corp. sells both items produced by other companies as well as sells items they have produced themselves. Target only sells the products they produce in their stores so they don’t have to worry about filling orders for other companies or be worried about demand from another company decrease. They are in control of their own supply and only have to worry about their own stores and the supply needed in house. While Target does produce some of their own goods, I would say their product or service is the shopping experience. Target Corp wants the consumers to choose them over all the other options there are out there that may offer similar products. With that being said, Targets fixed costs could include the order of products from companies looking to sell their products in Target stores. Target has to fill their stores with products they feel are of quality and will be sold. Among other fixed costs, paying the employees for their work is one. Some of the variable costs would include the research of technology for the Target mobile apps. Target is offering a personal easy and convenient options to shop at Target. Target is always looking for new ways to get their products out to the consumers and there can be a steep price for this. (The Shopping Experience) …show more content…

is a company that’s is economically efficient. They need to meet the demand of their customers at the lowest cost possible. “Economically efficient is the method that produces a given level of output at the lowest cost possible,” (Colander, 2017). Target is definitely working on their technological advances to be able to complete with their competitors as well as be as economically efficient as possible. These advances in technology can also build up revenue both online and in stores which will make Target very efficient. If Target want to be more efficient in the future they need to continue to increase the use of technology and reach out to consumers using the

Show More
Open Document