1.

Agenda About CitigroupVision , Mission , Brand Values PEST Analysis Citis Business level
strategyCitis Corporate Growth strategy Citibank SWOT Analysis (Citibank) Citibanks Strategies &
Core Competencies Competitor Analysis (Citibank)Porters 5 force model (Citibank)
2. Citigroup Citi was incorporated in 1988. Citi - a diversified global financial institution. Citi is the first
financial services company in the U.S. to bring together banking, insurance, and investments under
one umbrella. It provides a broad range of financial products and services to consumers and
corporate customers globally. Citi has the worlds largest financial services network. Its business
covers 107 countries with approximately 2,000 offices in the world.
3. Citi in India Citi - a premier local financial institution. Citi - the single largest foreign direct investor
in the financial services industry in the country. A customer base of over 1500 large corporates
and multinationals, 2500 small and medium enterprises, 40,000 asset based financing clients
and 7 million retail customers. It offers a comprehensive suite of products and services to both
commercial and retail clients across all economic segments and lifecycle stages.
4. Facts about Citi India Cash management throughputs at Citi India equal 40% of Indias GDP.
Citibank Indias e-business portal is the most visited Indian financial site. CFIL has financed over
130,000 trucks in India. Citigroup Global Services, is one of Indias largest BPO service providers
and services Citi operations in 36 countries. Citi - the first company in India to introduce stock
options for its employees. Citi - the first financial institution to export software services from India.
Citi has provided core funding of Rs. 15.4 crore to the Indian School of Micro Finance the first such
school in Asia.
5. SegmentsCiticorp Regional Consumer Banking Institutional Clients GroupCiti Holdings Brokerage
and Asset Management Local Consumer Lending Special Asset PoolCorporate Treasury Other
corporate expenses
6. Operating RegionsRegions North America Europe, Middle East & Africa Latin America Asia
7. Vision and Mission Vision Mission Our goal for Citigroup is to be the most respected global financial
services To be the leader in company. Like any other providing business public company,
wereprocess management obligated to deliver profits services to help and growth to our customers.
shareholders. Of equal importance is to deliver those profits and generate growth responsibly.
8. Citi Brand Values Citis corporate businesses leverage the Citi identity. Citis consumer businesses
worldwide leverage the Citibank brand identity. It represents everything the pre-eminent global
financial services company stands for : intelligent, engaging, human, friendly and innovative. Across
the globe, the overarching brand values of Citi are focused on preserving its reputation as the most
respected global financial services company in the world.
9. PEST Analysis
10. Political Influence Citigroup major corporate political spender Citigroup operates in more than
100 countries worldwide; they obey legislation specific to country Election Cycle Trends - significant
donations to 527 groups Trade Association Activity contributed approximately $8.5 million in
corporate funds to political activities since 2002
11. Economical Influence As a multinational, Citi is subject to fiscal policies employed by governments
in various countries. Incurred loss of $22 billion during Global downturn 2008. Citis financial results
are closely tied to the global and local economic conditions liquidity of the global financial markets
prevailing interest rates the rate of unemployment the level of consumer confidence changes
in consumer spending the number of personal bankruptcies
12. Social Influence Target is Individual consumers as well as small medium businesses The Citi
Foundation is committed to maintaining economically vibrant and environmentally sustainable
communities
13. Technological Influence Citigroup Works with Cisco Systems to Capitalize on Digital Media to help
Citigroup identify appropriate intellectual capital to distribute to clients and employees to help the
bank develop the right advanced content delivery, multicasting, and core-networking technology to
disseminate it. Use technology for e-Business model Early adopter of emerging technology
14. Generic business level strategyCiti follows Differentiation Strategy
15. Corporate Growth Strategy Vertical IntegrationHorizontal Integration Forward or Backward
Corporate DiversificationConcentration Growth Related or Unrelated International Global or Multi-
domestic
16. Citis diversification strategy Diversify into related businesses under some coherent strategic theme
Potential benefits of related diversification Cross-business sharing of expertise, capabilities and
technology Exploit economics of scope and capture synergy benefits from combining similar
operations of different businesses Enable collaboration to develop new strengths and create new
competitive capabilities Leverage use of a companys brand name Increase market power
Drawbacks of related diversification Difficulties of integrating the operations of businesses with
different cultures
17. Fundamentals of Citis Strategy Client focus Global strength Constant innovation
18. History 1812 - founded as City Bank of New York. 1894 - became the largest bank in the United
States. 1902 - began expanding internationally and became the first major U.S. bank to establish a
foreign department. 1930 - became the largest bank in the world with 100 branches in 23 countries
outside the United States. 1976 - changed its name to Citibank. 1981 - purchased Diners Club.
1994 - opening of the first fully foreign owned commercial bank in Russia 1995 - opening of the first
full service branch in China 1998 - Citibank was merged into Citigroup
19. Citibank Citibank is the consumer and corporate banking division of leading financial services
company Citigroup. The company has operations in around 1,700 locations, in more than 140
countries worldwide. Citibank offers the following products and services: Banking services
Credit cards Mortgages, Loans Investments Insurance Small business services
Corporate/Institutional services Asset management Government services Private banking
20. The Citicorp- Travelers merger Path to one stop financial shop. Citigroup able to service
consumers, corporations around the world as a universal bank.
21. MissionOur core mission is not to be a financial supermarket or a shadow bank. Our core mission
is to be the global bank for institutions and individuals, and to serve our clients with distinction. We
bring them unique value through our global reach and innovative solutions.
22. Value ChainCitibank represents both a Business-to-Consumer (B2C)and Business-to-Business
(B2B) organizational model.It creates value by limiting the intermediaries involved with the
distribution of its product, streamlining its business and reducing costs.This value creation
ultimately increases profits.
23. SWOT AnalysisStrengths WeaknessesGlobal network Tarnished brand nameBacking of the
Citigroup Online operations areInnovative product offering geared towards US
clientsComprehensive selection Issues of Corporate of financial products and Governance - Size of
services. company challenges clearStrong privacy and data focus across all divisions.
policiesGood Corporate CitizenOpportunities ThreatsGrowth markets Foreign exchangeChinese
market fluctuationsOnline presence Market conditionsStrengthen customer Regulatory forces
relationships by Competition from brick community involvement and mortar banks,Look for
acquisitions that combination brick and are compelling clicks and pure play bank strategically and
entities and financial financially services providers
24. Citibank Strategies Position itself as US leading International Bank A Premier local financial
institution Focus on Technology Full Fledged platform of highest quality services Innovative
products Focus on corporate and multinationals Banking upon an old and trusted name Corporate
Social Responsibility
25. Citi @ Online Citibanks strategic intent is to convert its traditional money management business into
an e-business framework. The goal of Citibanks strategic processes is to "be the
payment/settlement site of choice in the B2B and B2C flows, as well as a provider of value-added
solutions for net businesses". Citibanks new initiative in industry exchanges and tailored solutions
for industry leaders helps them differentiate themselves in these markets and gain competitive
advantage by e-enabling themselves for the new e-world.
26. Core Competencies"A core competency is an area of specialized expertise that is the result of
harmonizing complex streams of technology and work activity." C.K.Prahalad Core
Competencies: Proprietary data Operating in over 100 countries and as a local bank, serving
growing companies in 78 emerging-market countries and territories Citigroup is considered a
leader in online financial services Additionally, Citibanks technology platform supports it customers
need for transaction efficiency and tangible business results.
27. Competitor Analysis Bank of America: Provides a demonstration of their online banking product
Clearly defines their policy for online banking that guarantees $0 liability for unauthorized bill pay
Wells Fargo: E-business aggregation
28. Porters 5 forces - Citibank
29. Threat of New Entrants Low / high (exceptions) Existing loyalty to major brands Huge
Investments Incentives for using a particular buyer (such as frequent shopper programs) High fixed
costs Scarcity of resources High costs of switching companies Government restrictions or
legislation There is virtually no chance of a new entrant significantly affecting the major banks
market share. The only place that new entrants may have a chance in the industry is through
Internet banking, because of its low cost.
30. Power of Suppliers Low to medium There are very few suppliers of particular product categories
There are almost no substitutes in some product categories Switching to another (competitive)
product is very costly The supplying industry has a higher profitability than the buying industry .
Opportunities: Because of the increasing amount of technology Internet banking will begin to
replace traditional banking, thus cutting personnel costs. Incorporating investment banking into the
banking industry, as some major companies are doing. Threats: An increase in interest rates
causing a decline in bank activity. A collapse of the Fed leading to bank failures, a repeat of the
crash of 1929. A decline in the US economy leading to a fall in the value of the dollar, thus causing
an instable economy.
31. Power of Buyers Medium to High Large number of buyers Purchases large volumes
Concentration Ratio is medium being international Information is easily available to the customer
Switching to another (competitive) product is simple The product is not extremely important to
buyers; they can do without the product for a period of time Customers are price sensitive
32. Availability of Substitutes Low to medium Internet If substitutes are similar, it can be viewed in the
same light as a new entrant Presence of companies like Western Union, PayPal and Xe.com This
is not really an issue within the banking industry, because there arent really any legal alternatives,
except buying a safe and borrowing from a loan shark
33. Competitive Rivalry A highly competitive market might result from: Many players of about the
same size; there is no dominant firm Little differentiation between competitors products and
services A mature industry with very little growth; companies can only grow by stealing customers
away from competitors Technologically Advanced companies Introduction of new products by
competitors The banking industry is continuing to restructure and position itself for our changing
economy as a result, many mega-mergers have occurred in recent years. Citicorp and Travelers
Insurance agreed to merge in April 1998 at a value of $70 billion.Bank mergers are usually
consummated as a cost-cutting measure but also to compete with non-bank providers of financial
services.
34. Suggested Strategies Strengthen customer relationships by community involvement Communicate
benefits of online presence clearly Look for acquisitions that are compelling strategically and
financially Handle major international operations from India to gain expenses benefit Position itself
as a Global bank focusing on Indian consumers benefit Innovative products in emerging businesses
like mortgage, equity, consumer finance