One way to make a profit in a declining industry is to show industry leadership by buying competitors, encouraging others to quit, and announcing that you are replacing old capital equipment with lower-cost plant

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By acquiring competitors, a business can increase its market share and potentially benefit from economies of scale. Encouraging others to quit can also help reduce competition in the industry. Finally, by upgrading equipment to lower-cost options, the business can improve efficiency and reduce costs, increasing profitability. All of these actions demonstrate industry leadership and can help a business succeed even in a declining industry.

One Way to Make a Profit in a Declining Industry