Michael Porter's 5 Forces Applied to Your Career

The economist Michael Porter first presented his theory of the 5 forces in 1979 in an article published in the Harvard Business Review. Porter's strategy remains a reference point for analysing the attractiveness, competitiveness, and profitability within a sector.

As this is a well-established tool, I have prepared an analogy of how Porter's 5 forces can be used for the strategic management of your career.

1. New Entrants: New Professionals

There are always new professionals entering or migrating into your job market. Stay updated on emerging topics in your field and have a passion for continuous learning. While new entrants may represent a threat in market analysis, in career management, they can also present opportunities for exchanging experiences and knowledge, fostering a win-win relationship.

2. Bargaining Power of Suppliers: Employers

In the context of your career, employers represent the suppliers responsible for job opportunities, promotions, and other movements. When you diversify your skills and knowledge, you can work in multiple areas, reducing your dependence on specific companies. Building a strong network will also allow you to explore opportunities that may not be widely known.

3. Bargaining Power of Customers: Your Team

In this context, your team acts as the customer, relying on your leadership to perform their tasks and advance their careers positively. Invest in developing a positive work environment, provide growth opportunities, and value the individual skills of your team.

4. Threat of Substitute Products: Automation and AI

Various products can be seen as threats to your current role, such as automation and artificial intelligence. You need to demonstrate adaptability to new technologies and focus on tasks that add value to your profession. Engage in all innovation initiatives within your company; this will be a competitive advantage.

5. Existing Competitors: Experienced Professionals

Existing competitors are professionals with more experience in your field. Like new entrants, experienced professionals should not be viewed as a threat but as an opportunity to build a strong personal brand. Attend industry events and conferences, publish work, and write articles to increase your reputation and visibility. Cultivate good connections that are not solely financially motivated.

Applying Michael Porter's 5 forces strategy to your career management allows you to better understand the opportunities and dynamics of your sector, as well as strengthen your position in the job market. Managing your career is one of your most valuable assets and should not be delegated.