Professional Documents
Culture Documents
CASE BACKGROUND
Following an intense competition in 2000, Citibank
started to establish its e-business strategy
An internet platform should enable all customers with
similar needs to conduct business online
The case tells about Citibank's challenges in serving
corporate customers with diverse needs
Company Background
Citibank was founded in 1812 as City Bank of New York
Third largest bank company of the United States
Global bank with almost 4000 branch locations in 36
countries
Around 20% of Citibank's revenues are made in the
Asian market
Their online services division is among the most
successful (15 million users)
While MNC's didn't have problems with conducting business online, most
SME's were concerned about the security issues
Then they focused on alliances and the use of their partners' strengths
External Environment
Political /
legal
Technologica
l
Economical
Subprime mortgages
Industrial Environment
Bargaining Power of
Cutomers = HIGH
Bargaining Power of
New Entrants= HIGH
Having difficult in
investment all at once
Bargaining
Power of
Supplier =
HIGH
Having difficult in
investment all at
once
Rivalry among
Competing
Firm
More intensive
when other
competitor want to
improve market
competition by
following ebusiness strategy
Bargaining
Power of
Subsitute
Product =
f
SWOT Analysis
Leadership crisis
Operating expenses growth less than
revenue growth
Varied customer practices across
globe
More intant fraud
Strategic
Alliance
Key technology
players Oracle,
WEAKNESS
OPPORTUNITIES
NGTH
Conclusion
Many areas in banking were affected by the internet.
Meanwhile customer changed their expectations and
needs through developing technologies. To adapt to
these changes without losing its traditional strengths
and adding extra value for their customers, Citibank
formed a global web platform that enabled customers
to conduct their business online.