I recently witnessed a manager use fear as motivator with someone who’d rather not have a lot of responsibility on his hands. Frankly, this is the wrong person to challenge. But the bigger problem is this manager, and every other higher up in this company, uses fear to motivate people all the time!
There are many businesses that start out filling a need for a specific type of customer. Sometimes this leads to the creation of a new industry or segment that was ignored or unserved by incumbents.
If the business does everything right, they will be the leader for that new category, segment or industry. The problem arises when that leader stops paying attention to what started it all: the customer.