Online Startups Business Strategies in the Middle East and Noth Africa

What is it about?

This study examines the main business strategies used among internet-based startups in the Middle East, based on Proters famous competitive strategies model, then it assesses the possible impact of these strategies, Generic Competitive Strategies, Cost Leadership, Differentiation, and Focus, on the financial and non-financial Performance of Internet-based entrepreneurial ventures in the MENA region.

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Photo by Austin Distel on Unsplash

Photo by Austin Distel on Unsplash

Why is it important?

Technology and Entrepreneurship are inseparable, many developing countries are focusing on those two fields hoping to enhance their economics and the welfare of the people. Many international entities are investing in Asian entrepreneurial ventures, especially in the Middle East. A recent report by Mckinsey stated that “The potential for entrepreneurship in the Middle East is high, based on digital consumption and a startling increase in investment funding for start-ups.” Angel Investor, Amazon, Silicon Valley, and even Red Bull are joining a long list of American, European, and international investors in this sector. Internet-based ventures are among the most attractive opportunities for entrepreneurs, but with a higher failure rate compared to other initiatives. Therefore, it is crucial to understand which competitive strategy is most suited for such a new business and why. This paper is attempting to answer these questions through empirical research based on quantitative data from over 200 internet-based entrepreneurial ventures in the Middle East.

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