Auto Parts Store

The success of any business depends on a number of factors including but not in any way limited to the ability of the management to make superior decisions which guarantee the enhancement of the business’ profitability. Further, those at the helm must be able to manage the resources at their disposal in a wise way so as not only to maximize shareholder wealth but also to guarantee the continuity of the enterprise going forward. in this text, I concern myself with the ownership structure I would use for my new company as well as the marketing strategy I would employ.

The preferred ownership structure

Drucker (1999) defines ownership structure as equity distribution in a firm as far as capital is concerned. Because my business is relatively new, I would prefer to start it off as a limited liability company. I may choose to be the sole shareholder in the new outfit or bring on board several investors who may have special knowledge in management or Auto parts distribution or otherwise. My main motivation for Limited Liability Company stems from the characteristics of the same.

For instance, by letting my business be a limited liability company, the business shall have its own legal identity different from my own. In that regard, should I take a loan for the expansion of the business and fail to pay because of adverse business happenings; the lender shall not have a legal claim to my personal assets. This is also the case with suppliers. Should I be unable to settle my obligations (short term or long term), the suppliers shall have a claim up to what the business as a separate legal entity owns.

This in my opinion is an appropriate way to reduce my own personal financial risk as the business may end up not performing as expected given the fact that it is a relatively new entity. Secondly, by registering a limited liability company, I shall have the protection of the company name effected. This is indeed an important aspect as the business may grow to a point where others would seek to duplicate the name in efforts to confuse buyers.

This is indeed a trend that has been observed in some segments and because I am certain my business shall dominate the market in a short while, the legal protection of its name is worthwhile. Further, by giving the firm a legal identity, it shall have guaranteed continuity. According to Drucker (1999), a limited liability company is a formation of the law and hence only the law can bring about the ‘death’ of such a formation. It therefore means that should n later leave the scene, the business shall continue being in existence and its termination would only be informed by liquidation or a court order.

It is also important that should we need to introduce new partners or investors, it shall be easier with the entity being a limited liability company. This is essentially because when it comes to the sale as well as transfer of ownership, the shared of a limited liability company are easily transferable by dint of a share being a unit of ownership in a given company. It hence follows that the company shall have ease of seeking funds as it can always exercise the option of selling its shares to access more funds.

Market strategy and tactics

When it comes to the market strategy as well as structure, I try to adopt what I my opinion can not only enhance the competitive advantage of the firm but achieve greatest sales as well. To begin with, I shall adopt a cost leadership strategy. Here, I shall seek to be the lowest cost player in the industry so as to attain a sustainable competitive advantage. To be successful in my quest to be a low cost seller, I shall seek to buy my items in bulk so as to negotiate for better quantity discounts. His way, the buying price of each item per unit shall be significantly low to enable me offer my products for sale at a lower price than the competition.

By selling at a significantly lower price, I expect to get more customers and hence increase the number of units of items offer for sale hence largely gaining from economies of scale. It may also be beneficial for me to adopt a number of market dominance strategies i.e. follower. Here, I shall seek to do everything the competition does and while at it, seek their weak points and capitalize on them. For instance, if the competition does not offer to deliver products to the client on purchase, I can always deliver what clients purchase from my business at their preferred drop off point.


I am certain that if a business combines the proper ownership structure with the right marketing strategies, it can always attain market dominance within a short while. It is also important to note in conclusion that apart form the marketing strategies listed above, my business shall seek to incorporate other porter generic strategies so as to enhance its success chances.


Drucker, P.F. (1999). Management: tasks, responsibilities, practices. Gulf Professional