If you are referring his defeat at the end against the dragon, that is because of his hubris. He was too proud and believed that he could do it alone without his soldiers. This brings his defeat and he realizes that he will die because of his hubris, after which Wyglaf will take over since he was the only one brave enough to help.
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To <em>Build a Fire </em>is a naturalist tale and naturalism was a literary movement that aimed to provide an accurate, scientific depiction of reality without any kind of literary embellishment. With regards to this specific story: this event is important because it sets in motion the chain of events that will ultimately result in the main character's death. London uses the objective tone because it allows the reader to fully comprehend what this event potentially means for the perspective on the future survival of the man. The very factual and somewhat scientific tone conveys the accurate author's knowledge of the subject, rendering the situation more vivid and real for the reader.