I think the author misses the point that lower prices can actually be an incredible strategic advantage as long as you have the business model that supports it. You only need to look at a business model like ikea or wal-mart to see this in action. It also creates a Nice barrier to entry as the scale and experience you need in order to achieve thst low cost base is often impossible for new entrants unless some sort of disruption happens.

One way to prevent some sort of disruption in a business is to make it so cheap that it's no longer worth the time and effort to threaten your business...