AN ANALYSIS OF

TARGET CO.
Econ 2010: Microeconomics

Isaac Brooksby

11/27/22
 An Analysis of Target Co

I. Company Profile

The company, officially named Target Corporation, is a well know

business nationwide. Target was founded in 1960 as a retail store that produced
higher quality merchandise at a discount price. The first store was in Minnesota
and has grown to become a well-known store nationwide. Target has grown to
employ over 400,000 people and most people live within 10 miles of a Target.
Targets revenue in 2021 was totaled at $106 billion. The company takes 5% of all
earnings and put it back into the communities doing service and other things to
help. (Target, 2022).

II. Consumer Demands

Target utilizes an economic pricing strategy when determining their

products. Target’s motto is Expect more. Pay less. The point of the company is to
get higher quality products for cheaper. The demand for the products is high as
more people are joining the fashions of the economy today. They have
competitors such as Walmart who has cheaper prices but not as good quality. The
need for Targets products is rising as generations are growing up and wanting
more of the finer products. Target has built the reputation of quality and famous
people are incorporating themselves with Target as well. Target has a high
elasticity for their products as they produce higher quality products.

III. Cost Structure

Target has a wide variety of costs that are incorporated into the
corporation that the owners must incorporate as well as their selling. Target has a
structure in which the company plans for the products, the cost, and margins that
it wants to achieve for the new products. Their cost structure also must
 An Analysis of Target Co
incorporate expenses such as employees’ salaries, equipment, and buildings.
These are fixed costs that can’t be changed. There are also variable costs such as
advertisements and types of merchandise they sell.

IV. Market Structure

Target Corporation is an oligopoly. Target is a market structure that is

dominated by a few sellers. Target is a big enough company that they can make
price changes in the market. Their market structure make’s other companies such
as Walmart and Smith’s need to apply changes to their prices and offerings.
Target corporation also have a strategy of focusing on the likeness of targeted
customers. They aim to have new and innovative products to supply for their
customers.

V. References

About target corporation. Target Corporate. (n.d.). Retrieved November 27, 2022, from
https://corporate.target.com/about

VI. A reflection on Microeconomics.

Microeconomics is a section of economics that is concerned with a single factor and the
effect of an individual decision. From learning about the supply and demand to learning
about Fixed and variable costs. Learning about the elasticity of products and companies and
how much of an impact it may have is also a great way to see if a company will survive or
fail over time. Finding out about consumers choice as well and how most people say they
would buy a product but only 30% would actually pay for it is also a big factor in economics.
 An Analysis of Target Co
Learning about unemployment, wage gaps based on sex, religion, race, and religion is a very
interesting and shocking statistic that all people should be aware of.