• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...


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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level ICT in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level ICT in Business essays

  1. Marked by a teacher

    business online

    4 star(s)

    divided into four quadrants - Customer, Operations, People and Finance - which, in turn, are divided into several segments, each with a set of Key Performance Indicators (KPIs) which are based on demanding but achievable targets. The core purpose of Tesco is to create value for customers to earn their lifetime loyalty.

  2. External and internal environment analysis of British Airways.

    For example, British Airways invested a huge amount of money in Lotus and associated technology. The Lotus technology installed sits within a complex and sophisticated IT environment that also encompasses the use of UNIX for real-time and other database applications.

  1. Apple Incorporation - Case Analysis

    Turning over inventory in 4.1 days is still great. Profitability Profitability 1998 1999 2000 2001 2002 2003 Return on Assets 7.25% 12.72% 13.14% -0.39% 1.06% 1.05% Return on Operating Assets = Operating Assets / Average Operating Assets (TA)

  2. Analyse the role and value of organizational strategy, models of strategic HRD, employee development ...

    By continuously developing employee expertise in key domains of product and market expertise, competitive advantage is achieved and expanded. The nature of this strategy is closer to the deliberate than the emergent end of the strategy continuum as organisations use existing patterns of strategy to expand in areas where they already enjoy sales leadership or other measures of market success.

  1. Implementation of ATMS at SBI. Banks in India are looking at deploying biometric ATMs ...

    at irregular monthly intervals and quarterly, by a third official deputed by the Controller. Controllers should verify during their Branch visits that prescribed procedure for ATM Cash Verification is followed. The ATM Cash and related Accounts are now part of verification audit by the Circle Auditors, Inspection and Audit Department Officials and Statutory Auditors.

  2. Business Online

    The second method use it to allow the customers to look through Tesco's product range, check prices and availability, place orders online, and also choose a delivery slot. All of this could be accomplished using the Internet through the Tesco Direct site (www.tescodirect.com). Tesco owned its own ISP network (www.tesco.net)

  1. Concepts & Principles of International Management - Management Style Manual & Survival Guide for ...

    must issue their subordinates with the skills and knowhow they need to work efficiently with their teams. However, participative leadership is not the norm among the Spanish directors. Therefore, there is a need for adapting the other styles and make them more participative which requires great commitment from the leaders.

  2. In this assignment I'll be explaining how the government supports the development of e-business, ...

    beneficial for newcomers who wanted to develop and expand online, furthermore the government will also advise on what software to use and how to use it with the help of their own personal advisors. Skill Where I am now Where I want or need to be Activities that could help

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work