Porter's Five Forces model is used to analyze the competitiveness of industries and determine the profitability and attractiveness of a market. The model examines five forces - the threat of new entrants, power of suppliers and buyers, threat of substitute products, and intensity of rivalry. The document analyzes Porter's Five Forces model in the context of Coca-Cola's operations in the Indian soft drink industry, where it faces competition from rivals like Pepsi and substitute beverages while negotiating with suppliers and retailers.