Impact of New Entrants on Competitive Forces

In assessing the competitive landscape of an industry, analysts often refer to Michael Porter's Five Forces framework. This framework helps in understanding the factors that influence competitive intensity and, ultimately, profitability in an industry.

Consider the consumer electronics industry, which is characterized by rapid technological advancements and shifting consumer preferences. A new startup is entering this industry, offering innovative products at lower prices. How does this new entrant impact the competitive forces within the industry?