“Citibank’s e-Business Strategy for Global
STRATEGY AND MANAGEMENT OF CHANGE
DR. VANAJA KARAGIANNIDIS
TABLE OF CONTENT
Table of content2
Strategic Issues of City Bank between the years 1990 to 20074
What are the main capabilities of Citibank? Does Citi bank have a
core competence? 5Create SWOT analysis to understand Citibank Citibak’s strengths
and weaknesses 6
Does Citibank have a sustainable competitive advantage in the banking
industry? If so what is the source? What about Citibank’s evolution
and current business strategy may pose problems going forward?8
This case of study “Citibank’s e-Business Strategy forGlobal Corporate Banking” talks about how is Citibank is implementing the e-business and what are the challenges in to the develop of the strategy in a changing environment and a hyper changing and fast technology demand. One of the main challenge is to provide a single, global platform that can fit a multi-segment market where they have to put together multinationals with medium and smallcorporations that are no ready to make the change to online services.
At the same time it shows how Citibank have a clear focus in where they prefer to compete with good service and invest in technology rather than compete with a low price.
Strategic Issues of City Bank between the years 1990 to 2007
Citibank had to face some issues that did affect them in this strategy but also the allbusiness and the banking sector. The first one is the fact that they wanted to provide a single platform that can fit together multinationals with medium and small corporations and all this with different currencies and multi language, the second issue is the changing global environment and finally a very important issue in the developments of technology. Also all this issues for Citibank havecontributed to the increment of the competitive environment in which financial corporations including banks operate.
What are the main capabilities of Citibank? Does Citi bank have a core competence?
The capabilities are basically what makes the strategy works, in terms of business this capabilities are what the organizations need to execute the business strategy. Also we can think aboutcapabilities as the sum of process and resources that are use for a specific purpose and help creat a competitive advantage. (Angelina Zubac, Graham Hubbard, Lester W. Johnson, 2010)
According to this Citibank have a specific set of capabilities to support the e-business strategy, this capabilities start with the capacity of global reach as they are in 100 countries around the world this capabilitiesallow them keep looking for the important customers as well as to pay importance to emerging markets that are 80% of the world taking into account that this 80% have 43% of purchase power.
Citibank has also capabilities on being innovative and having a great customer service. First they saw the potential of the online business even that they didn’t follow the dot-com boom but they were thinkingahead in what was going to be the future of online banking, as well as to give the customers what they want and need for future transactions
Maybe the most important capability for this particular strategy of e-business is the technological capabilities as these were the back bone of the offered cutting edge services that were going to develop Citibank’s competitive advantages. (Hsu, Hsing and Kuo,2007)
When I talk about core competence of Citibank on the e-business strategy I have to understand that this cybermediation didn’t exist prior e-business, so in the account aggregation services and online banking Citibank was a pioneer, therefore at that particular moment the technological capabilities transform as a core competence and give value translated into a competitive advantage....