If the business proposition is being "cheap", then they will have to undercut everyone

If you undercut everyone, they will undercut competitors with the same strategy

If a cheap competitor undercuts a cheap competitor margins will tend to zero

If a competitor is pricing at zero and you need to undercut them, you will operate at a loss

Eventually the company will either shut down, or be liquidated, its valuable assets (the existing contracts and list of customers) will be bought by competitor or Private Equity.

This is common in domains, thousands of registrars get acquired by a megacorp, see NewFold Digital.

So in essence, when the business proposition is being cheap, the natural consequence is the business dying and being sold for parts to a purchaser that will have to degrade the cost to value relationship that got the customers in the first place.