The study of the question of what relates to factors of production belongs to a kind of sacred cows of economic theory, which considers them as resources that are somehow attracted to production activities. Traditionally, the concept of factors of production included such components as labor, land and capital. In the second half of the twentieth century, information was also added to these components. Some researchers, in addition, singled out entrepreneurial talent from the concept of “labor” as a separate indicator.
An analysis of the processes taking place in the modern economy gives some reasons to assert that consideration of the structure of factors of production now requires a certain addition and refinement.
If we consider what relates to production factors from the point of view of the prevailing trends in the modern economy, it becomes quite obvious that marketing, for example, can hardly be overestimated as a completely independent and important factor.
Here, the task of satisfying the needs of the market comes to the fore, which limits the use of administrative methods of management and thereby enhances market democracy and professionalism.
The classic competition model is: “reduce the price, improve the quality, provide the buyer with additional benefits (in the form of payment, supplies, maintenance, etc.).” In addition, the implementation of the functions of competition and the positive consequences of its manifestations in the dynamics of the relationship between the price of consumption and the quality of goods, firstly, leads to the objective need for the formation of a competitive environment. And this should be done not only in the interests of producers, but, first of all, consumers and, secondly, it will directly link the functions of competition with its advantages, both for companies and for the products they produce. In this case, it is quite appropriate to include the competitive advantages of an enterprise in the factors of social production .
With the development of technological, production and managerial innovations, as well as the globalization of national and international competition, the theory of comparative advantages of production factors, which are in abundance, the problem itself, which relates to production factors, ceases to meet the modern requirements of economic science. At present, a new theory of competitive advantage is gaining acceptance. It means the following:
1. The advantages of the enterprise and the goods ceased to be static. They change under the influence of innovation and investment processes in engineering and production technology, management methods and forms of organization, in ways of promoting goods to markets.
2. The mechanism for creating market advantages based on competition is not the only one. The state is considered here as the most important subject of the formation of competitive strategies and enterprise advantages. In this regard, the market mechanism is supplemented by the state mechanism for regulating competitive relations and the competitiveness of enterprises.
3. The globalization of the economy forces the enterprise to take into account not only its own and industry interests, but also national as well as international conditions when forming its advantages.
All this testifies to the fact that, answering the question of what relates to production factors, we can state with a certain degree of confidence that competitive advantages have become a quite tangible and isolated factor. To create them, the state needs to take measures to create a competitive environment and protect competition, stimulate the constant introduction of innovations, optimize and improve state regulation, taking into account trends in the global economy.
These advantages can be defined as the efficiency of the enterprise in any field, which, firstly, gives it the best (compared to competitors) opportunities to attract and retain consumers, and secondly, allows you to obtain stable profits and on this basis ensure the reproduction of the main capital.