Sometimes a market share decline is deliberately engineered to improve profits.

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A company may purposely choose to reduce its market share in certain segments or geographies where competition is too intense, pricing pressures are high or profit margins are low. By focusing on more profitable products, services or markets, the company seeks to improve its overall profitability and return on investment. This strategy is known as "profitable growth through smart shrinkage" and can involve pruning unprofitable products, customers or channels, reducing marketing or R&D spending, outsourcing non-core activities or divesting underperforming business units.

Sometimes a Market Share Decline Is Deliberately Engineered to Improve