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The following Strategic Management plan evaluates Citigroup's competitive position and internal and external environments to determine strategic direction.

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The following Strategic Management plan evaluates Citigroup's competitive position and internal and external environments to determine strategic direction. Alternative strategies are then derived and chosen. The plan recommends that Citibank select to expand its insurance business to foreign markets, by focusing on online banking and the consumer demand for online financial processing. It analyzes how Citibank differentiates itself from the competition by offering a broad line of products and services and exploiting cutting edge technology to support global online banking transactions. It also explores the threats, opportunities, weaknesses, and strengths impacting Citibank's success in competing for online banking market share. Online banking has brought traditional financial functionality into Cyberspace. The Compounded annual growth of online banking since 1994 has been 80%. Worldwide, more than 100 million households now bank online. Looking ahead, usage is projected to increase to 50+ million U.S. households. Worldwide, the total is expected to triple to 300 million or more households (Online Banking, 2003). Internet Banking enables financial institutions to market and sell new products, increase their end user base and build longer lasting relationships. Launching online banking services requires minimal demand on the banks existing infrastructure and resources. ...read more.


Citibank's strategic intent is to convert its traditional money management business into an e-business framework. The company has historically emphasized advanced technology, as a testament to its leadership it was ahead of its competition in ATM deployment throughout the 1970's and 1980's (Gallivan, 2001) Citibank continues to emphasize technological advancements in it strategic processes today. As noted on the bank's web site, the goal of Citibank's strategic processes is to "be the payment/settlement site of choice in the business to business (B2B) and business to customer (B2C) flows, as well as a provider of value-added solutions for net businesses" (Internet Citibank e-Business): CitiDirect is a major initiative in this arena. Industry e-Solutions provide industry specific solutions to enable clients to provide unique value to their customers. 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. e-Solutions provide clients and communities, in general, with new ways to operate and redefine market practices or open new market spaces in the e-business frontier. Along with management's common focus and consistent principles, Citibank's strategic process in e-business builds upon the company's core competencies. ...read more.


Desegregation helps build new kinds of value for Citibank. Focusing on concerns like customer service to system availability are important concerns when reviewing, developing, and implementing online banking strategies Citibank differentiates itself from its competitors in its quests to remain a leader in the Global Banking arena. Citibank should continue with an aggressive strategy thereby positioning its internal strengths to take advantage of external opportunities, overcome internal weaknesses, and avoid external threats. Second, Citibank should focus expanding its insurance vehicles to foreign markets such as those in Mexico and Japan. Citigroup has established a truly unique presence in Japan, conducting business and building strong ties with retail outlets, institutional, and government clients for more than 100 years. Also it will be critical for Citigroup to capture market share in order to strengthen their presence in Mexico to facilitate the financial transactions between the U.S., Mexico, and Canada. Mexico is one of the United States' largest trading partners. The Mexican people are loyal in nature and would likely support Citigroup on a long-term basis if they perceived them as helping develop the network infrastructure and technology to make online transactions possible. Citibank should pursue an aggressive strategy to expand its insurance business via branch and on-line vehicles to foreign markets, particularly in Mexico and Japan. ...read more.

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