In the world of business strategy, few intellectual frameworks have been as transformative as Harvard Business School Professor Michael Porter’s Five Forces. This innovative model became the intellectual backbone of the management consulting industry, systematically analyzing competitive dynamics and unlocking economic potential for their clients. Porter’s Five Forces—the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, the threat of substitute products and competitive rivalry—revolutionized how businesses understand competitive advantage. Consulting firms like McKinsey, Boston Consulting Group and Bain & Company built global practices around this analytical framework, helping companies navigate complex competitive landscapes. Five Forces thinking can help advance national prosperity and security through Patriotic Capitalism.
The Five Forces of Patriotic Capitalism
Drawing from the wisdom of economic titans like Adam Smith and Milton Friedman, here’s one possible approach to advance national prosperity presented in the spirit of Porter’s Five Forces:
National Unity: Reject the toxic politics of division and embrace a collective vision of shared prosperity. As Smith’s concept of the “Impartial Spectator” suggests, we must view our national economic challenges with objectivity, morality and collective empathy.
Fair Opportunity: Move beyond zero-sum thinking to create a positive-sum economic ecosystem where every American can compete and succeed. From the farms of rural America to the inner cities, from Appalachia to the heartland, Patriotic Capitalism promises opportunity for every American.
Ethical Governance: Reimagine government’s role through an intelligent lens of economic pragmatism. Smart regulations that protect workers and support those disrupted by economic change aren’t impediments to capitalism—they’re its foundation. Friedman’s famous essay, “The Social Responsibility of Business is to Increase its Profits,” assumed ethical corporate behavior, an economic framework with sensible regulations and a tax system that enables the government to support those left behind by economic change and protect the planet. Friedman’s essay also reinforces that it is in corporations’ financial interest to support stakeholders and take actions to make their companies more attractive to talented employees, reduce operational costs and offer other economic benefits to stakeholders that increase overall enterprise value.
Moral Capitalism: Return to the wisdom of business leaders who understood that long-term success comes from investing in people—not just maximizing short-term stock prices. Every stakeholder matters: workers, communities, environment and shareholders. The 1943 Johnson & Johnson credo is a great corporate template. This aligns with Adam Smith’s original vision of moral capitalism.
Rule of Law: Support a transparent, fair legal framework that advances opportunities for all Americans, creating a level playing field that unleashes collective potential.
The Global Competitive Landscape
The stakes are enormous. Due to disengaged employees, American businesses are losing up to $605 billion annually. In the last 25 years, we’ve forfeited over $20 trillion in potential economic value by failing to create fair, inclusive economic opportunities. Meanwhile, our global competitors are racing ahead with strategic investments in human capital that promote unity and engagement. From Europe to the Far East, entire educational ecosystems are designed to help individuals develop cutting-edge skills.
The Mittelstand, small and medium-sized businesses that are the backbone of the German economy, invest heavily in worker training, with employees receiving continuous education that keeps them at the forefront of technological innovation. Singapore’s SkillsFuture program provides citizens with credits for continuous learning while creating economic zones that attract high-tech industries and supporting worker retraining with government subsidies. And Nordic countries have transformed their approach to human capital, creating social safety nets that enable workers to retrain without financial risk and implementing progressive tax structures that support workforce development.
These nations are breaking down systemic barriers, creating adaptive organizational cultures and investing in human potential in ways that go beyond traditional economic thinking. America must respond—not with fear, but with strategic innovation.
A Call to National Action
Using Porter’s Five Forces framework to drive Patriotic Capitalism transcends political, racial and socioeconomic boundaries. It speaks to our collective interest in a stronger, safer, more prosperous America. As Porter himself observed, “The essence of strategy is choosing what not to do.” Today, we must choose to invest in our greatest resource—our people. We must not choose division. We must choose unity and embrace a vision of capitalism that sees our diverse population as our greatest competitive advantage.
