Final answer:
Amazon revolutionized the book selling industry mainly through its efficient production model and cost structure, which enabled competitive pricing and online delivery, leading to lower prices and a vast inventory, causing traditional bookstores to struggle or close.
Step-by-step explanation:
How Amazon Revolutionized the Book Industry
Amazon has drastically changed the book selling industry and outpaced its competition primarily through its production model and cost structure. These innovations have allowed Amazon to offer lower prices than traditional bookstores, even when including shipping costs. Prior to the rise of Amazon, book sales were predominantly managed by independent bookstores with small inventories or larger chains such as Borders and Barnes & Noble in urban locations. However, Amazon's focus on online delivery and sales directly to consumers enabled it to offer a vast selection of books, which was not previously possible for physical stores with limited shelf space.
Amazon's ability to underprice competitors has been a key factor in its dominance over the book industry. Its vast inventory and the convenience of online shopping, combined with competitive pricing, have contributed to the closure of independent bookstores and struggles of once-dominant chains like Borders, which has gone out of business, and Barnes & Noble, which is facing challenges. Through strategic pricing and a robust delivery system, Amazon created a new standard in the book market that others have struggled to match.