Long term, systemic damage to both product and company reputation.
Google Stadia case in point. Nobody serious backed Stadia because almost everyone expected Google to kill it off so nobody jumped to it and then it was inevitably killed off because it didn't bring in the cash Google was expecting. Even when the stars had aligned for them with the pandemic and supply shortages that should have given them tons of players Google just couldn't convince enough people to go for it.
I wouldn't be surprised if there are high level talks going on about the sustainability of some of this exact lines of thinking. Chasing growth organically is fine. Artificially generating it by shifting costs or cutting corners elsewhere to maintain the illusion of growth eventually sinks the whole ship.
Nobody cares though. Investors only care about short term. When it stops making money they will just move their money somewhere else. When you can get out of the game at any time there is no incentive to think long term for those at the top. The Executives are told to make money today. And why not? They will leave soon too. To run another company for a few years doing the same thing. The only people who are interested in long term viability are customers and low level employees. And their opinions don't matter.
Google Stadia case in point. Nobody serious backed Stadia because almost everyone expected Google to kill it off so nobody jumped to it and then it was inevitably killed off because it didn't bring in the cash Google was expecting. Even when the stars had aligned for them with the pandemic and supply shortages that should have given them tons of players Google just couldn't convince enough people to go for it.
I wouldn't be surprised if there are high level talks going on about the sustainability of some of this exact lines of thinking. Chasing growth organically is fine. Artificially generating it by shifting costs or cutting corners elsewhere to maintain the illusion of growth eventually sinks the whole ship.