Originally, the business began in 1985 with the Australia domestic supply. In this period of time, Greg Stamboulidis ran his own small business which had a low profit margin and low competitive position in the market. In 1990, with the increasingly difficult supply in domestic market, the young header of Stambos Company had a spot light in his business’s procurement plan. He followed the cost-leadership strategy which is “an integrated set of actions designed to produce or deliver goods or services at the lowest cost, relative to competitors, with features that are acceptable to customers” (Dallas, 2002, P.132). In 1980, Greg Stamboulidis decided to choose a international supplier as South Africa after searching for other suppliers in Singapore, Philippines and Malaysia. This way is known as first-mover advantage which is “an early competitive advantage that allows firms to anticipate customers’ need and shape their industry’s future (Dallas, 2002, P.130) Consequently, Stambos took a new direction in its afterward leading way which meant to start the new venturing.
Greg Stamboulidis did joint venture with South Africa supplier in which he bought raw material and outsourced the manner from. Then, the product was shipped to Namibia for repackaging before delivering straightly to Australia in order to prevent the political constraint about exploiting shark. In that time, the business had above-average Returns when met customer’s demands with good quality and low price in compared with its local competitors.
Unfortunately, Greg Stamboulidis faced major obstacle in his own business in 1995 when South Africa’s political environment was unstable and high-risk, and when the largest supplier was unable to do business with. In order to compete with difficulties, Greg Stamboulidis realized to diversify international supply in which he found other supply rather than depending on a singer supply. Further cost-leadership strategy, he also applied something...