INDUSTRY ENVIRONMENT(PORTER’S FIVE FORCES)

FUNCTIONAL AREAS STRENGTHS WEAKNESSES

RIVALRY - High * World’s largest banking enterprise & * Since competition is high the company
credit card issuer needs to offer lower prices that it’s rivals
resulting to Low Profitability

BARGAINING POWER OF * High demand from existing consumers * Customers switched to more credible
CONSUMER - High for different products which Citigroup can banks
flexibly offer * Consumers can choose banks which
offers lower prices

BARGAINING POWER OF Low bargaining power of suppliers  Lowers the overall profitability of Banks
SUPPLIES - Low

NEW ENTRANTS & Adaptation of product diversification High Capital Requirements & Higher
ENTRY BARRIERSS - Low strategies Regulatory Compliance Cost, Low
Profitability

THREATS FROM Established bank which can easily adapt to Customer chooses Banks with Lower
PRODUCT the digital innovation of the banks Interest Rates, better prices and
SUBSTITUTION - industry Integration of digital products innovation
Moderate