The study seeks to identify the environmental variables that affect the target cost and competitiveness and test the relationship between environmental variables and target cost, Also test the relationship between environmental variables and competitiveness, And test the relationship between the use of the target cost approach and competitiveness, Through a survey form distributed to a sample of (94) specialists to arbitrate a group of companies with industrial activity in Greater Cairo, using the descriptive and analytical method ,  the results showed that there is a statistically significant relationship to the impact of environmental variables on the use of the target cost approach to increase competitiveness. The study recommended: Attention to reduce costs while maintaining quality throughout the production process The pricing of the product should be based on scientific studies of the market in all its aspects. To study the obstacles and problems that prevent the application of the target cost approach, Achieving appropriate quality, excellence and innovation in products to suit the wishes of customers, and it faces stiff competition in the markets.