Submitted by:

Tushar Bansode (P904)

Sumeet Gupta (P920)
Ashray Surekar
Vruti Mehta
Vineet Shahade
Agenda
 Citigroup
• Citi was incorporated in 1988.
• Citi - a diversified global financial institution.
• Citi is the first financial services company in the U.S. to
bring together banking, insurance, and investments
under one umbrella.
• It provides a broad range of financial products and
services to consumers and corporate customers
globally.
• Citi has the world's largest financial services network.
• It’s business covers 107 countries with approximately
2,000 offices in the world.
•
•
 Citi in India
• Citi - a premier local financial institution.
• Citi - the single largest foreign direct investor in the
financial services industry in the country.
• A customer base of over
– 1500 large corporates and multinationals,
– 2500 small and medium enterprises,
– 40,000 asset based financing clients and
– 7 million retail customers.
• It offers a comprehensive suite of products and services
to both commercial and retail clients across all
economic segments and lifecycle stages.

 Facts about Citi India
• Cash management throughputs at Citi India equal 40% of
India's GDP.
• Citibank India’s e-business portal is the most visited Indian
financial site.
• CFIL has financed over 130,000 trucks in India.
• Citigroup Global Services, is one of India’s largest BPO
service providers and services Citi operations in 36
countries.
• Citi - the first company in India to introduce stock options for
its employees.
• Citi - the first financial institution to export software services
from India.
• Citi has provided core funding of Rs. 15.4 crore to the Indian
School of Micro Finance – the first such school in Asia.
 Segments
Citicorp


 Regional Consumer Banking

 Institutional Clients Group


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.
•
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
–

 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
–
–

 Social Influence
• Target is Individual consumers as well as small medium
businesses
•
• The Citi Foundation is committed to maintaining
economically vibrant and environmentally sustainable
communities
•
•
•
 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.
–
• Use technology for e-Business model
• Early adopter of emerging technology


–
 Generic business level strategy

•
•
•
•
•
•
•
•
•
•
 Citi follows “Differentiation Strategy”
•
 Corporate Growth Strategy

Horizontal Integration Vertical Integration

Forward or Backward

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

• Path to one stop financial shop.

• Citigroup – able to service consumers,
corporations around the world as a universal
bank.
 Mission
 Our core mission is not to be a financial supermarket or a
“shadow bank.”


 Our core mission is to be

 the global bank
 for institutions and individuals,
 and to serve our clients with distinction.
 We bring them
 unique value through our
 global reach and innovative solutions.
•
•
Value Chain
SWOT Analysis
 Citibank Strategies

• Position itself as US leading International Bank

• A Premier local financial institution
• Focus on Technology
• Full Fledged platform of highest quality services
• Innovative products
• Focus on corporate and multinationals
• Banking upon an old and trusted name
• Corporate Social Responsibility
•
 Citi @ Online
• Citibank's strategic intent is to convert its traditional
money management business into an e-business
framework.
• The goal of Citibank's strategic processes is to
 "be the payment/settlement site of choice in the B2B and B2C
flows, as well as a provider of value-added solutions for net
businesses".
• 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.
•
 Core Competencies
 "A core competency is an area of specialized expertise that is the
result of harmonizing complex streams of technology and work
activity."
 – C.K.Prahalad
• Core Competencies:
– Proprietary data
– Operating in over 100 countries and as a local bank, serving
growing companies in 78 emerging-market countries and
territories
– Citigroup is considered a leader in online financial services
– Additionally, Citibank's technology platform supports it
customer's need for transaction efficiency and tangible
business results.



 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

• Low / high (exceptions)

• Existing loyalty to major brands
• Huge Investments
• Incentives for using a particular buyer (such as frequent
shopper programs)
• High fixed costs
• Scarcity of resources
• High costs of switching companies
• Government restrictions or legislation
• There is virtually no chance of a new entrant significantly
affecting the major banks' market share. The only place
that new entrants may have a chance in the industry is
through Internet banking, because of its low cost.
 Power of Suppliers
• Low to medium
• There are very few suppliers of particular product categories
• There are almost no substitutes in some product categories
• Switching to another (competitive) product is very costly
• The supplying industry has a higher profitability than the buying
industry .
• Opportunities:
– Because of the increasing amount of technology Internet banking will begin
to replace traditional banking, thus cutting personnel costs.
– Incorporating investment banking into the banking industry, as some major
companies are doing.
• Threats:
– An increase in interest rates causing a decline in bank activity.
– A collapse of the Fed leading to bank failures, a repeat of the crash of 1929.
– A decline in the US economy leading to a fall in the value of the dollar, thus
causing an instable economy.
 Power of Buyers

• 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

• A highly competitive market might result from:

– Many players of about the same size; there is no dominant firm
– Little differentiation between competitors products and services
– A mature industry with very little growth; companies can only grow
by stealing customers away from competitors
– Technologically Advanced companies
– Introduction of new products by competitors
–
• The banking industry is continuing to restructure and position itself
for our changing economy as a result, many mega-mergers have
occurred in recent years. Citicorp and Travelers Insurance
agreed to merge in April 1998 at a value of $70 billion.Bank
mergers are usually consummated as a cost-cutting measure but
also to compete with non-bank providers of financial services.
 Suggested Strategies
• Strengthen customer relationships by community
involvement
• Communicate benefits of online presence clearly
• Look for acquisitions that are compelling strategically
and financially
• Handle major international operations from India to gain
expenses benefit
• Position itself as a Global bank focusing on Indian
consumers benefit
• Innovative products in emerging businesses like
mortgage, equity, consumer finance

Thank You