Your case involves a declining industry. Should you recommend a bold new direction, or focus on maximizing profits while the company still exists?

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New direction, always look for growth

Depends on your competitive position - if you are not #1/#2 in your industry, maximize profits, wait to be taken out by strategic acquirer/competitor.

If you are #1/#2, you should be consolidating to become largest, and drive down unit economics to create a moat, maybe reinvest savings to create new moat, so that one day you can price and grow.

See any GDP-level growth industry: airlines, CPG, etc.

Also, the biggest players in all of the markets above have diversified portfolios.

Why not both simultaneously or in sequence?

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