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The Hidden Forces Shaping Your Leadership Strategy
Ikechukwu Okoh
October 06, 2025
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THE LEADERSHIP PULSE
Yesterday, on my way to London by train, I began reflecting on my early years, those formative times when business meant buying and selling.
An incident suddenly came to mind.
One afternoon, an aunt of mine came to our house, visibly upset.
She had been part of a trading group, and they were demanding she pay a so-called “huge sum” to remain in their circle.
I was too young at the time to fully understand, but I recall thinking:
Why pay to continue selling what you already know how to sell?
Many years later, during my MBA studies, that memory came back vividly as I learned about Porter’s Five Forces, a framework that explains why some industries remain profitable while others decline.
It struck me:
What my aunt faced wasn’t merely unfairness.
It was market power at work.
She wasn’t paying for friendship;
She was paying because a group controlled access to profit.
That insight redefined my view of leadership, business, and even my clients.
We don’t lead in isolation.
We are led by forces, competitive, social, and structural, that influence our every decision.
Recognising these forces isn’t optional;
It’s essential- enabling us to lead through change instead of just reacting to it.
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DR IKECHUKWU OKOH
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Strategy Deep Dive: Understanding Porter’s Five Forces
Michael Porter introduced the Five Forces Model in 1979 to help explain the profitability differences within industries.
Beyond academic use, it remains a vital framework for leaders, especially in uncertain times, to understand competitive dynamics.
Here’s a leadership-focused summary of the Five Forces:
1. Competitive Rivalry
Leaders constantly face rivals (direct or indirect) who vie for customers, attention, funding, or influence.
Intense rivalry can lead to price cuts, slimmer margins, and team burnout.
If you’re reacting rather than leading, you‘re within this force.
Leadership Tip:
You can't eliminate competitors, but you can differentiate yourself by focusing on value and a strong culture, rather than noise.
2. Threat of New Entrants
Whenever profitability appears attractive, new entrants emerge.
Tech lowers barriers, and globalisation accelerates this.
Leaders should anticipate and fortify their positions, rather than stifling innovation.
Leadership Tip:
Rely on capabilities, not secrecy, for lasting advantage.
Building trusted relationships and reliable turnaround times can create scalable protection.
3. Bargaining Power of Suppliers
Suppliers include those providing talent, technology, data, or distribution.
Overreliance grants them control over costs and quality.
Leadership Tip:
Diversify sources before dependence becomes a vulnerability.
4. Bargaining Power of Buyers
Buyers wield influence through choices like walking away, comparing prices, or demanding extras.
Leaders must enhance perceived value, not just cut prices, to gain influence and credibility.
Leadership tip:
Shift from selling features to emphasising value.
5. Threat of Substitutes
Substitutes are alternatives that make your offerings unnecessary, cheaper, faster, or more convenient solutions.
Recognising and addressing substitutes early is crucial.
Leadership Tip:
Stay ahead by innovating yourself, not just reacting to disruptions.
The Leadership Application of Porter’s 5 Forces
You can use the model beyond business. Apply it to your leadership ecosystem.
Force | Leadership Reflection | Action |
|---|---|---|
Competitive Rivalry | Who challenges your influence daily? | Position through value and authenticity. |
New Entrants | What new trends could make your style obsolete? | Learn continuously and evolve early. |
Supplier Power | Who do you rely on too much? | Build alternatives and independence. |
Buyer Power | Who dictates your pace and price? | Communicate impact and raise trust. |
Substitutes | What could replace your role or relevance? | Lead innovation, not resistance. |
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When Competition Changed the Game
A client of mine, a rapidly expanding telehealth firm in Nairobi, once reached out to me in a state of distress.
A major global startup had entered the East African market with substantial funding, but its user growth suddenly stopped overnight, causing investor anxiety.
We examined their business using Porter’s Five Forces, discovering that their primary threat wasn’t the new competitor but their weak internal processes and dependence on external tech providers.
Within three months, they revamped their backend infrastructure, restructured their pricing strategy, and introduced a referral program offering rewards.
Six months later, their metrics increased by 60%.
Their CEO shared a powerful insight:
“Before, we fought our competitors. Now, we’re shaping our entire ecosystem.”
This highlights how strategic awareness can transform your approach from a defensive to a proactive one.
The Leadership Reflection Framework
Use this 5-step reflection model every quarter:
Map out your five forces.
Assess the power of each (High, Medium, Low).
Mitigate the strongest threats.
Maximise your most significant advantages.
Keep track of changes regularly.
It’s straightforward, but it keeps you agile in a shifting landscape.
Ikechukwu’s Journal
During yesterday’s train ride through the countryside, I couldn’t help but think of my aunt and smile.
Although she never studied Porters’ Forces or earned an MBA, she had a natural grasp of power.
She understood that some markets lack fairness.
However, authentic leadership, particularly strategic leadership, involves learning to navigate smarter, not necessarily harder.
By understanding the five forces that influence your environment, you shift from being a victim of external pressures to becoming the one who shapes your position.
Authentic leaders do not complain about their competitors.
Instead, they craft strategies that incorporate them into their own.
What to Do This Week
Map your five forces: Who influences your leadership today?
Identify one you can strengthen and one you can weaken.
Take one bold action this week to increase your advantage.
Leadership is never neutral.
Every decision operates within a system of power, pressure, and opportunity.
When you grasp these forces, you cease merely reacting and begin to lead.
And don’t forget, next Tuesday, a new episode of Fireplace Conversations will be live at 8 AM.
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Ikechukwu Okoh
Author of the Leadership Pulse
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