Final answer:
The Internet of Things has changed business models by enhancing connectivity and competition, benefiting both small and large firms, and fostering the growth of megafirms with significant market share.
Step-by-step explanation:
In accordance with Hui's 2014 discussions, the Internet of Things (IoT) has fundamentally shifted existing business models by introducing significant technological and globalization changes. IoT enables new connections between consumers and businesses, fueling the rise of 'winner-take-all' markets and thereby altering the competitive landscape. Small firms now have the capacity to extend their reach far beyond local markets, engaging customers across the country or globally, while large firms leverage advanced technologies to manage operations more effectively across widespread locations.
These transformations are reshaping the scale and scope of operations, encouraging the development of megafirms like Amazon and Apple that dominate their industries. Nevertheless, there is a delicate balance between promoting smaller enterprises and preventing the over-concentration of market power.