Competitive analysis between Netflix and Shahid in the Middle East using Porter's diamond model

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Abstract

This study conducts a comparative analysis of the competitiveness of two leading streaming platforms – Netflix and Shahid – in the Middle East and North Africa (MENA) market. Netflix, as a global company with an extensive infrastructure, seeks to expand its presence in the region, while Shahid, owned by the MBC Group media holding, focuses on local content and deep integration with regional specifics. The aim of the study is to identify the strengths and weaknesses of both platforms, determine their competitive advantages and weaknesses in terms of consumer demand, market structure, and interaction with supporting industries. Using a comprehensive approach, the work demonstrates how global and local strategies adapt to the cultural and economic conditions of the region and how this impacts the companies' positions in the rapidly growing media consumption segment. The methodological basis of the research is Michael Porter's "Diamond Model," which allows for structuring the analysis of competitiveness through four key dimensions: factor conditions, demand conditions, related and supporting industries, and firm strategy and rivalry. The scientific novelty of the study lies in the systematic comparison of global and regional streaming platforms using Porter's model in relation to the MENA market for the first time. Unlike most previous works that were limited to describing cultural differences or technical aspects of services, this work combines quantitative indicators, market data, and theoretical analysis, enabling an objective assessment of competitiveness. The results show that Shahid holds leading positions in the region due to a high level of content localization, numerous partnerships with telecommunications operators, and support from governmental bodies. At the same time, Netflix retains a global advantage due to its brand, technological infrastructure, and financial stability. The conclusions drawn indicate the need for Netflix to deepen investments in local productions and partnerships, while Shahid should adopt advanced global technologies and improve its pricing policy. Thus, the study demonstrates that success in the MENA market is only possible with a comprehensive consideration of cultural, institutional, and economic factors, as well as flexible adaptation of strategies by both global and local players.

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