Re: Isnt this what people want?
"I've always reckoned an effective strategy would be cut advertising and marketing costs and deploy the saving into good products and customer service and just gain market share from the others' customer churn."
You are nearly right with that...
When a company does just what you say, they gain market share, they pay their staff well and make a profit, hell they might even make their customers happy :-) <<=== I want more companies like this - I used to work for one of them...
Unfortunately companies like that are few and far between because eventually someone makes an offer to buy the company that the board can not refuse. The company is then stripped of assets (transferred to the parent or holding company, so they can be rented back), it is saddled with the debt incurred in buying the company (and we see charges of management fees for providing an executive from the new parent company). Next R&D is shown the door, Support is reduced and or offshored, because profits can be higher. The new execs get to take a big bonus, and the company can trade on for another few years as a zombie - it is already dead, it just doesn't know it yet.
The exec go back to the parent company, mission accomplished and more the richer, leaving the a corpse of another company in its wake (or better yet sold to another meat grinder to pick over the remains), along with a staff looking for new work.....