INTRODUCTION Entrepreneurship is an activity that involves the processes of undertaking innovations by an individual otherwise known as an entrepreneur. Majorly entrepreneurs aim at transforming the innovations into products and services that are capable of generating profits. New opportunities as business ventures are being started usually require to be keenly evaluated in the process of assessing the risks involved. This paper seeks to give various perspectives in relation to Greg Stambolidis corporate venture. THE DEVELOPMENT OF GREG’S CORPORATE VENTUREThrough focusing on the business activities that begin from the production process to the final consumers of goods and services otherwise known as the value chain Greg Stamboulidis came up with his business venture (Pech 2009, 16).
To begin with Greg began his entrepreneurial venture by selling foods staffs in a canteen in school as well as fish in a certain shop in the region of Melbourne. Each and day in the morning Greg sourced his fish from Melbourne market where his supplier was situated. At the time it was on small scale basis and there were very low profits accruing from the business.
He had not started thinking about improving the value chain until he figured out that if only he got supply of fish from overseas it would be much better since there supplier of fish in the southern region of Australia was very limited and the strict regulation from the government to a much greater extent did not make the supply processes any easy. Additionally Greg desired to source fish from overseas due to the fact that costs of labor, the prices of shark and the levels of competition were very high.
Greg made the first step in his venture by identifying South Africa as the new source of his fish. The reason behind such a decision was that south Africa was at the time experiencing some problems domestically such as the apartheid regime which meant that there was a likelihood of the prices of fish being quite low than they were in Australia. At that point in time Greg experienced an increased profit margin by 100% different form the 11% to 16% profit margins that he used to gain when he had sourced his fish from the Melbourne market.
It is the desire of any given business venture to become competitive and gain a competitive edge in the market where it operates. In this case competitive advantage implies to the various activities that are reflect that a business is doing better than other similar business that may be in existence. The idea of Competitive advantage emanates from what consumers think about a business as they compare it with another. In connection to this Greg identified new suppliers who were cheaper and reliable as compared to those of his competitors.
Greg went a step further by entering into a joint venture with the suppliers from South Africa which resulted to greater product reliability and better system of networking. Besides having South Africa as the source of his fish Greg identified other sources such as Chile, Mexico as well as Brazil. It is quite important to not that the management of vale chain would aid his business to gain a competitive edge (Grant 2005, p. 65). In addition Greg came up with new business ventures through a strategy known product differentiation.
In line with this Greg produced new products for instance frozen fish, calamari ring and hotdogs. Through making his products different and unique from what his competitors provided he increased the value for those products. It is required that firms should put into consideration the suppliers ability as well as consumers demand before going ahead with the implementation process of the differentiation strategy. The sole aim is to come up with products that are of the best vale in the face of customers.
Therefore both differentiation as well as the value placed upon the supply could be used in creating a new business venture.