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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.

‡ 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. . ‡ Citi . 40.000 asset based financing clients and 7 million retail customers.a premier local financial institution.Citi in India ‡ Citi . 2500 small and medium enterprises. ‡ A customer base of over ± ± ± ± 1500 large corporates and multinationals.

‡ Citi has provided core funding of Rs.Facts about Citi India ‡ Cash management throughputs at Citi India equal 40% of India's GDP.000 trucks in India. is one of India¶s largest BPO service providers and services Citi operations in 36 countries.the first company in India to introduce stock options for its employees. ‡ Citibank India¶s e-business portal is the most visited Indian financial site. ‡ Citigroup Global Services. . 15.4 crore to the Indian School of Micro Finance ± the first such school in Asia. ‡ Citi .the first financial institution to export software services from India. ‡ Citi . ‡ 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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Operating Regions Regions y North America y Europe. Middle East & Africa y Latin America y Asia .

.´ To be the leader in providing business process management services to help customers. we're obligated to deliver profits and growth to our shareholders. Like any other public company. Of equal importance is to deliver those profits and generate growth responsibly.Vision and Mission Vision Mission ³Our goal for Citigroup is to be the most respected global financial services company.

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

PEST Analysis .

Political Influence ‡ Citigroup ± major corporate political spender ‡ Citigroup operates in more than 100 countries worldwide.significant donations to 527 groups ‡ Trade Association Activity ± contributed approximately $8.5 million in corporate funds to political activities since 2002 . they obey legislation specific to country ‡ Election Cycle Trends .

‡ 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 . Citi is subject to fiscal policies employed by governments in various countries.Economical Influence ‡ As a multinational.

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 .

multicasting. and core-networking technology to disseminate it.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. ‡ Use technology for e-Business model ‡ Early adopter of emerging technology .

Generic business level strategy Citi follows ³Differentiation Strategy´ .

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

Citi¶s 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 company¶s brand name Increase market power ‡ Drawbacks of related diversification ‡ Difficulties of integrating the operations of businesses with different cultures .

Fundamentals of Citi¶s Strategy ‡ Client focus ‡ Global strength ‡ Constant innovation .

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

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

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

Mission Our core mission is not to be a financial supermarket or a ³shadow bank. We bring them unique value through our global reach and innovative solutions. and to serve our clients with distinction.´ Our core mission is to be the global bank for institutions and individuals. .

Value Chain Citibank represents both a Business-to-Consumer (B2C) and Business-to-Business (B2B) organizational model. . This value creation ultimately increases profits. ‡ streamlining its business and ‡ reducing costs. It creates value by ‡ limiting the intermediaries involved with the distribution of its product.

combination brick and clicks and pure play bank entities and financial services providers .SWOT Analysis Strengths ‡Global network ‡Backing of the Citigroup ‡Innovative product offering ‡Comprehensive selection of financial products and services. 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.Size of company challenges clear focus across all divisions. ‡Strong privacy and data policies ‡Good Corporate Citizen Weaknesses ‡Tarnished brand name ‡Online operations are geared towards US clients ‡Issues of Corporate Governance .

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 .

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

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. Citibank's technology platform supports it customer's need for transaction efficiency and tangible business results.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.

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 .

Porter¶s 5 forces .Citibank .

because of its low cost.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. .

thus causing an instable economy. ± 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. thus cutting personnel costs. ‡ Threats: ± An increase in interest rates causing a decline in bank activity.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 . ± Incorporating investment banking into the banking industry. ‡ Opportunities: ± Because of the increasing amount of technology Internet banking will begin to replace traditional banking. a repeat of the crash of 1929. . as some major companies are doing.

they can do without the product for a period of time ‡ Customers are price sensitive ‡ ‡ ‡ ‡ ‡ ‡ ‡ .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.

PayPal and Xe. because there aren't really any legal alternatives.com ‡ This is not really an issue within the banking industry. except buying a safe and borrowing from a loan shark . it can be viewed in the same light as a new entrant ‡ Presence of companies like Western Union.Availability of Substitutes ‡ Low to medium ‡ Internet ‡ If substitutes are similar.

Citicorp and Travelers Insurance agreed to merge in April 1998 at a value of $70 billion. there is no dominant firm ± Little differentiation between competitors products and services ± A mature industry with very little growth.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. 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.

equity. 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.

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