The beauty of the free enterprise system is that it's free. You are free to make what you want, where you want and sell to whom you want. It creates competition and competition is good for the end consumer.
Seth Godin wrote yesterday about the race to the bottom. The one way to maintain your standing is to strip the costs or race to the bottom. There is also a tend at times to try to buy your business. Neither is very long term. You could actually win the race to the bottom or you could spend way too much for your business.
The essence of free enterprise is to figure it all out and that is Marketing. 4 P's. The right Product, the right Price, the right Promotion, and the Right Personal Relationships (Oh I mean sales).