A Comparative Study On The Customer Equity Of China’s And Multinational Seed Companies

The promulgation and implementation of the ‘Law of the People’s Republic of China on Seed’ in 2000 makes China ’s government set to ease policy for the seed companies. So the multinational seed companies are entering China’s seed market step by step, and eroding the share of China’s seed market. This kind of invasion which brings the problem on China’ s food security has caused the attention of government and academia. While facing the current situation, China’s seed companies should rethink that why the multinational seed companies be able to enter the Chinese market so quickly, and why China’s seed are losing the competitiveness when everything is appropriate.They also need to rethink that what are the advantages of multinational seed companies and what are the disadvantages of China’s seed companies. In order to answer the questions above, this paper takes the maize farmers of Tian Jin and Shan Dong in Huang-Huai-Hai Region as the research object and focus on the view of customer equity, comparing the customer equity by principal components analysis to find out the differences of driving factors of customer equity. Based on the principle of seek common ground while reserving differences, this paper tries to make recommendations on the issue that how China’s seed companies have a better development. Finally, by the analysis of the status quo of maize seed companies and empirical study, this paper forms the following four conclusions:(1) There is a large gap on the operating performance and R&D between China’s maize seed companies and multinational maize seed companies, meanwhile the latter is superior to the former.(2) Multinational maize seed companies implement vertical integration in the process of strategic development, and develop a diversified economy which have strong breeding center as the support. While the strategic direction of China’s maize seed companies is fuzzy and less investment in core breeding techniques.(3) China’s maize seed companies keep in step with the multinational maize seed companies on the three dimensions of customer equity, while the importance ranking of principal components is different between China’s maize seed companies and the multinational maize seed companies. The importance ranking of principal components of China’s maize seed companies as following:value equityâ†' brand equity â†' relationship equity; and the multinational maize seed companies’ as following: value equityâ†'relationship equityâ†' brand equity.(4) The sub factors constitute segment in the three dimensions are different betweenChina’s maize seed companies and the multinational maize seed companies.Multinational maize seed companies list the three basic attributes of seed in relationship equity, while China’s maize seed companies list them in the value equity. The multinational maize seed companies list the level acceptance of price in the brand equity,while China’s maize seed companies list them in the value equity,etc.Finally, this paper puts forward the policy suggestions for the China’s maize seed companies from the two major levels which are business management and institutional,which are proposed to provide a theoretical basis for China’s maize seed companies, so as to promote the sustainable and healthy development of China’s maize seed companies.