Professional Documents
Culture Documents
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
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.
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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
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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
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Social Influence
• Target is Individual consumers as well as small medium
businesses
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• The Citi Foundation is committed to maintaining
economically vibrant and environmentally sustainable
communities
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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.
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• Use technology for e-Business model
• Early adopter of emerging technology
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Generic business level strategy
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Citi follows “Differentiation Strategy”
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Corporate Growth Strategy
Corporat
Concentration e Diversification
Related or Unrelated
Growth
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
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
• 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