How is the five forces framework used for analyzing competitive environment of any industry? Illustrate with the help of an industry of your choice.

The Five Forces Framework, developed by Michael Porter, is a strategic tool used to analyze the competitive environment of an industry. It helps organizations understand the factors affecting profitability and competitiveness by evaluating five key forces: the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and industry rivalry. These forces shape strategic decisions and influence management's approach to market positioning, resource allocation, and risk mitigation.  

### 1. Threat of New Entrants  
New entrants bring fresh competition, often disrupting existing market dynamics. The level of threat depends on industry entry barriers such as capital requirements, economies of scale, brand loyalty, regulatory restrictions, and access to distribution channels. If barriers are low, new competitors can enter easily, intensifying competition.  

Example: Airline Industry  
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