Final answer:
The IoT has changed business models by increasing globalization and improving technology, resulting in intensified competition. It has created both opportunities for small firms to expand their reach and the possibility of large businesses dominating markets. This requires strategic regulation and investment to balance employment, societal, and environmental impacts.
Step-by-step explanation:
The Internet of Things (IoT) has significantly changed business models by enabling greater globalization and advancements in technology. IoT connects consumers and businesses on a global scale, intensifying competition and changing how markets are defined. It can benefit small firms by enabling them to reach a wider audience, yet it also fosters the development of large, dominant companies, such as Amazon and Microsoft, within 'winner-take-all' markets. This dichotomy presents a battleground for firms of all sizes and shapes the economic landscape by influencing employment, the power dynamics between businesses, governments, and workers, as well as environmental and societal impacts.
Moreover, business-to-business websites facilitated by IoT technologies allow suppliers and buyers to interact and trade across international boundaries with ease, which can lead to increased efficiencies and greater business scales. However, there is also the potential for megafirms to emerge, which can exert significant influence over various stakeholders. This environment necessitates careful regulation and investment in human capital to manage the shifts in employment and to ensure that mature and profitable firms contribute positively to society.