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Tushar Bansode (P904) Sumeet Gupta (P920) Ashray Surekar Vruti Mehta Vineet Shahade

Agenda
About Citigroup

Vision , Mission , Brand Values
PEST Analysis Citi’s Business level strategy Citi’s Corporate Growth strategy Citibank SWOT Analysis (Citibank) Citibank’s Strategies & Core Competencies Competitor Analysis (Citibank)

Porter’s 5 force model (Citibank)

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 world's largest financial services network. • It’s business covers 107 countries with approximately 2,000 offices in the world.

• Citi . • A customer base of over – – – – 1500 large corporates and multinationals.000 asset based financing clients and 7 million retail customers.Citi in India • Citi . . • It offers a comprehensive suite of products and services to both commercial and retail clients across all economic segments and lifecycle stages.the single largest foreign direct investor in the financial services industry in the country.a premier local financial institution. 2500 small and medium enterprises. 40.

the first company in India to introduce stock options for its employees.000 trucks in India. • Citi . • Citigroup Global Services. is one of India’s largest BPO service providers and services Citi operations in 36 countries. • Citi has provided core funding of Rs. • Citi .the first financial institution to export software services from India. • Citibank India’s e-business portal is the most visited Indian financial site. 15.4 crore to the Indian School of Micro Finance – the first such school in Asia.Facts about Citi India • Cash management throughputs at Citi India equal 40% of India's GDP. • CFIL has financed over 130. .

Segments Citicorp Regional Consumer Banking Institutional Clients Group Citi Holdings Brokerage and Asset Management Local Consumer Lending Special Asset Pool Corporate Treasury Other corporate expenses .

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Middle East & Africa  Latin America  Asia .Operating Regions Regions  North America  Europe.

Vision and Mission Vision Mission “Our goal for Citigroup is to be the most respected global financial services company. . we're obligated to deliver profits and growth to our shareholders.” To be the leader in providing business process management services to help customers. Of equal importance is to deliver those profits and generate growth responsibly. Like any other public company.

• It represents everything the pre-eminent global financial services company stands for : intelligent. engaging. . • Across the globe. human. friendly and innovative. • Citi’s consumer businesses worldwide leverage the Citibank brand identity. the overarching brand values of Citi are focused on preserving its reputation as the most respected global financial services company in the world.Citi Brand Values • Citi’s corporate businesses leverage the Citi identity.

PEST Analysis .

significant donations to 527 groups • Trade Association Activity – contributed approximately $8. they obey legislation specific to country • Election Cycle Trends .5 million in corporate funds to political activities since 2002 .Political Influence • Citigroup – major corporate political spender • Citigroup operates in more than 100 countries worldwide.

• Incurred loss of $22 billion during Global downturn 2008. • Citi’s 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 .Economical Influence • As a multinational. Citi is subject to fiscal policies employed by governments in various countries.

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 .

• Use technology for e-Business model • Early adopter of emerging technology .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.

Generic business level strategy Citi follows “Differentiation Strategy” .

Corporate Growth Strategy Horizontal Integration Vertical Integration Forward or Backward Concentration Corporate Growth Diversification Related or Unrelated International Global or Multi-domestic .

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 company’s brand name Increase market power • Drawbacks of related diversification • Difficulties of integrating the operations of businesses with different cultures .Citi’s diversification strategy • Diversify into related businesses under some coherent strategic theme • Potential benefits of related diversification • • • • • Cross-business sharing of expertise.

Fundamentals of Citi’s Strategy • Client focus • Global strength • Constant innovation .

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began expanding internationally and became the first major U.History • 1812 .S.opening of the first full service branch in China • 1998 . • 1930 .changed its name to Citibank. • 1981 .became the largest bank in the world with 100 branches in 23 countries outside the United States. • 1894 .became the largest bank in the United States. • 1902 . • 1994 . bank to establish a foreign department.opening of the first fully foreign owned commercial bank in Russia • 1995 . • 1976 .founded as City Bank of New York.purchased Diners Club.Citibank was merged into Citigroup .

• The company has operations in around 1. in more than 140 countries worldwide. Loans Investments Insurance Small business services Corporate/Institutional services Asset management Government services Private banking . • Citibank offers the following products and services: – – – – – – – – – – Banking services Credit cards Mortgages.700 locations.Citibank • Citibank is the consumer and corporate banking division of leading financial services company Citigroup.

The Citicorp. . • Citigroup – able to service consumers. corporations around the world as a universal bank.Travelers merger • Path to one stop financial shop.

.” Our core mission is to be the global bank for institutions and individuals.Mission Our core mission is not to be a financial supermarket or a “shadow bank. We bring them unique value through our global reach and innovative solutions. and to serve our clients with distinction.

• streamlining its business and • reducing costs. .Value Chain Citibank 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. This value creation ultimately increases profits.

combination brick and clicks and pure play bank entities and financial services providers . •Strong privacy and data policies •Good Corporate Citizen Weaknesses •Tarnished brand name •Online operations are geared towards US clients •Issues of Corporate Governance . Opportunities •Growth markets •Chinese market •Online presence •Strengthen customer relationships by community involvement •Look for acquisitions that are compelling strategically and financially Threats •Foreign exchange fluctuations •Market conditions •Regulatory forces •Competition from brick and mortar banks.SWOT Analysis Strengths •Global network •Backing of the Citigroup •Innovative product offering •Comprehensive selection of financial products and services.Size of company challenges clear focus across all divisions.

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 .

• Citibank's 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. as well as a provider of value-added solutions for net businesses". . • The goal of Citibank's strategic processes is to "be the payment/settlement site of choice in the B2B and B2C flows.Citi @ Online • Citibank's strategic intent is to convert its traditional money management business into an e-business framework.

." – C.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.K.Core Competencies "A core competency is an area of specialized expertise that is the result of harmonizing complex streams of technology and work activity. Citibank's technology platform supports it customer's need for transaction efficiency and tangible business results.

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 .

Citibank .Porter’s 5 forces .

The only place that new entrants may have a chance in the industry is through Internet banking. .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. because of its low cost.

thus causing an instable economy. a repeat of the crash of 1929. as some major companies are doing. • Threats: – An increase in interest rates causing a decline in bank activity. thus cutting personnel costs. – A collapse of the Fed leading to bank failures. – A decline in the US economy leading to a fall in the value of the dollar. – Incorporating investment banking into the banking industry. • Opportunities: – Because of the increasing amount of technology Internet banking will begin to replace traditional banking.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 . .

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 .

PayPal and Xe. except buying a safe and borrowing from a loan shark .com • This is not really an issue within the banking industry. because there aren't really any legal alternatives.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.

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. there is no dominant firm – Little differentiation between competitors products and services – A mature industry with very little growth. Citicorp and Travelers Insurance agreed to merge in April 1998 at a value of $70 billion. many mega-mergers have occurred in recent years. .Bank mergers are usually consummated as a cost-cutting measure but also to compete with non-bank providers of financial services.Competitive Rivalry • A highly competitive market might result from: – Many players of about the same size.

consumer finance .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.

Thank You .

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