Perhaps you know about the race to the bottom that Seth Godin was talking about.
That can happen to a business too. If you innovate, use technology to drive down costs or invent a way that your digital product can do a much better job at a fraction at the price, it’s great.
But if you drive down costs by slashing the quality of your service, or by underpaying your staff, you are on the wrong path of business development. That will lead, sooner or later to a failed business.