Profit strategy is an attempt to artificially support profits when a company's sales are declining by reducing investment and short-term discretionary expenditures.
When their is a decline in the company's sales, the company uses the profit strategy in order to support profits. This is done by reducing investment and short-term discretionary expenditures. In this situation, the target of the company is to maintain profitability by hook or a crook.
A discretionary expenditure is a cost that a business or household can survive without, if necessary. So when a company's sales are declining, the company reduces such expenses which are not necessary to be made currently.
Hence, a profit strategy is an attempt to support profits at the time of declining revenue.
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