Submitted by:

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 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.
 Facts about Citi India
• Cash management throughputs at Citi India equal 40% of
India's GDP.
• Citibank India’s 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 India’s 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.
 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
 Operating Regions

Regions
 North America
 Europe, Middle East & Africa
 Latin America
 Asia
 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, we're
process 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.”
 Citi Brand Values
• Citi’s corporate businesses leverage the Citi identity.
• Citi’s 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.
PEST Analysis
 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
 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.
• 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
 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
 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
Generic business level strategy

Citi follows “Differentiation Strategy”

 Corporate Growth Strategy

Vertical Integration
Horizontal Integration Forward or Backward

Corporate Diversification
Concentration Growth 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
 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
 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
 The Citicorp- Travelers merger
• Path to one stop financial shop.
• Citigroup – able to service consumers,
corporations around the world as a universal
bank.
 Mission
Our 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.
 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,
• streamlining its business and
• reducing costs.

This value creation ultimately increases profits.

SWOT Analysis
Strengths
•Global network
•Backing of the Citigroup
•Innovative product offering
•Comprehensive selection
of financial products and
services.
•Strong privacy and data
policies
•Good Corporate Citizen
Opportunities
•Growth markets
•Chinese market
•Online presence
•Strengthen customer
relationships by
community involvement
•Look for acquisitions that
are compelling
strategically and
financially
Weaknesses
•Tarnished brand name
•Online operations are
geared towards US clients
•Issues of Corporate
Governance - Size of
company challenges clear
focus across all divisions.
Threats
•Foreign exchange
fluctuations
•Market conditions
•Regulatory forces
•Competition from brick
and mortar banks,
combination brick and
clicks and pure play bank
entities and financial
services providers
 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
 Citi @ Online
• Citibank's strategic intent is to convert its traditional
money management business into an e-business
framework.
• The goal of Citibank's 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".
• 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.
 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, 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
Porter’s 5 forces - Citibank
 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.
 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.
 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
 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 aren't really any legal alternatives, except
buying a safe and borrowing from a loan shark
 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.
 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
Thank You