Sure, and this is a major factor behind the number of deaths among drug users too. Bad product such as opiates cut with fentanyl or "bath tub crank" methamphetamine with nasty contaminants chases out purer (and thus lower margin because it's harder to make) product.
(I'm not advocating use of these drugs, just pointing out that less harm would be done if they were pure instead of nasty street jank.)
Organized criminals who are willing to be violent displace outlaw entrepreneurs who are peaceful.