Final answer:
Porter's Five Forces Model shows the impact of technology and globalization on competition in the book industry, where companies like Amazon have outpaced traditional bookstores due to cost-effective business models and expansive global reach.
Step-by-step explanation:
The impact of Porter's Five Forces Model on digital and printed books can be understood by examining the shifts in technology and globalization that have redefined markets. Specifically, these shifts have intensified competition and changed consumer behaviors in the book industry. The global reach of the internet has allowed retailers like Amazon to overwhelm traditional bookstores through superior production models, cost structures, and the ability to provide a vast array of books online.
Amazon's competitive advantage in the book selling industry can be attributed to its ability to offer lower prices, inclusive of shipping costs, its user-friendly online platform, and the convenience of home delivery it provides. The traditional brick-and-mortar bookstores have struggled to compete with Amazon’s extensive inventory and price competitiveness further influencing market forces.
Globalization, supported by advancements in communication technologies, has enabled Amazon’s rise as well as the increased presence of business-to-business online platforms, creating more global competition and leading to the decline of local retail businesses. These factors illustrate the dynamic nature of industry forces as analyzed through the lens of Porter's Five Forces.