Use a substitution: let b = x^2
Then b^2 = x^4.
Now you need to factor
b^2 - 2b + 1 =
(b - 1)^2
Since b = x^2, now we replace b with x^2 and factor again.
(x^2 - 1)^2 is the square of a difference of squares.
= (x^2 - 1)(x^2 - 1)
=(x + 1)(x - 1)(x + 1)(x - 1)
= (x + 1)^2(x - 1)^2