Citibank Case

The supreme mortgages crisis In October 2007 affected reminiscence as Collector Incurred losses of $9. 83 billion for the last quarter of 2007. The ever-changing spheric economy encourages Citi lingo to be more than progressive to respond to impertinently trends and clients needs. It is an epoch of tough competition in which CitiBank has the job to find ways to always step-up operational efficiency while maintaining or even improving helpings to customers. thither Is a rapid change In applied science that requires CitiBank to respond to untried customers demand.For Instance, businesses demanded electronic Invoicing, automatic application of defrayals to accounts receivable and online payment guarantees. Due to the tough competition environment, if CitiBank is non able to provide such service, former(a)(a)wise commits could steal their customers. The net income is probably the well-nigh important feature in the swaning application. Customers nowadays prefer to r un their transactions online because it Is more efficient and less time consuming.Citibank k raw(a) that this was full of life to their success, and their b every(prenominal)oons was to pay back the worlds track e-business enabler. Indeed, engine room investments In the global financial service persistence were growing at a aim of 4. % per year. CitiBank then implement an e-business scheme to stomach on its vision. 2. There atomic number 18 barriers to unexampled entrants in the financial services industry, oddly on the global market stage. Deutsche Bank and Callback were actually the dickens leading banks that Invested heavily in monitoring funds balances online.It requires a lot of Investment from hot(prenominal) banks to be able to compete with these two giants of the industry. However, CitiBank is vistad with a low take aim of rivalry from rough Macs that build their suffer bodys and look for ways to disintermediation banks. Also, some(prenominal) genealog y companies compete heavily by employ their technological expertness and interests in providing new services. It exists a racy dicker top executive of customers because their needs and expectations are changing rapidly. Indeed, In the financial services Industry, customers are everything.The bargaining power of suppliers Is medium due to the top executive of CitiBank to amaze Lava Trading and another(prenominal) study electronic savvy companies in coiffure to tallyer its refugeal clients the benefits of the most advanced and robust electronic trading system in the market. There are no bustiest products in the financial services industry, and for the reasons mentioned above, this industry is unattractive(a) if one is a new comer. However, for Institutions like Callback that enjoy a sustainable competitive emolument, It Is definitely an attractive Industry. . Among its main capabilities, CitiBank is able to manage some of their clients duties such as managing their accounts receivables and payable. CitiBank has been able to become not only a bank but global financial institution by building a all-embracing customer base, offering diverse products, actively participating in the community, ND recruiting ply and senior management from the local population. Moreover, CitiBank make continuous investment in technology to provide corporate customers the most cost-effective, cutting-edge, reliable, and control solutions.Citibanks core competence would definitely be its customer service. Their focus on customers enabled them to acquire a significant market share. Customers allegiance was driven by Citibanks commitment to probity in its processing business. The bank was ranked higher than its competitors in the areas of accuracy, timeliness, accessibility, and responsiveness some(prenominal) years in a row. . CitiBank has several strengths, which include a global network, an innovative product offering, and an experienced staff group.Indeed, the bank opera ted in 100 countries, it offered a capacious variety of products and services, and employed over 268,000 employees from which contagious disease was staffed by world-class employees with expert association of financial data. According to the case, CitiBank didnt have many a(prenominal) weaknesses. However, I could identify increased operating costs of between 2005 and 2006 that caused the readying off of 17,000 positions. On the other hand, there are opportunities available to CitiBank. The worlds largest market, China is now liberalizing its market, gift CitiBank opportunities to enter this market.Also, CitiBank can improve its online charge because it has been more focused on the US market, which is actually its largest. However, with the BIB transfers, Citibank is able to augment its international activities. Like any other financial institution, threats come from foreign fill in fluctuations, unstable market conditions, and regulators. CitiBank as well as has to face c ompetition from technology companies that use their expertise to provide new services. For now, CitiBank enjoys a sustainable competitive advantage until another bank is able to replicate what they are doing outmatch on a global level.The antecedent of this sustainable competitive advantage is their office to reach a wide lay out of customers by offering a customer service of excellence but also a wide range of products and services. I think that what may hinder CitiBank to go forward might be the high costs associated to technology investments in the global financial service. It is growing at a significant rate per annum, obligating CitiBank to spend a lot of money acquiring new technology and find oneselfting rid of its people. It could get to a mint where talented employees do not want to work for CitiBank fearing lay offs. . CitiBanks customers include Macs, financial institutions, governance sectors, local corporations, and Seems. The bank has opportunities in other marke ts like China, India, and the European market. Indeed, in other countries the Internet on the cell strait is used differently. It is very common to watch people making bank transactions through their cell phones. CitiBank should target some of their services to this particular group of customers. rather of putting a big accent mark on its corporate customers, It snouts also consoler making e rots to meet Uninominal customers needs. . CitiBanks e-business strategy is based on the banks purpose to become the worlds leading e-business enabler. It adopted this strategy because it wanted to empower local, regional, and global customers and the business-to-business-to- consumer mart and provide solutions to help them take advantage of the efficiencies and opportunities created by e-commerce. The challenge will be to keep its operating costs at a reasonable level because technology investments in the global financial service industry are constantly increasing. other challenge was for CitiBank to translate its traditional strengths to the Internet in a way that would tally value for its customers. CitiBank was able to integrate products in new ways, build a new global infrastructure to deliver products and services online, and deploy Web- enabling access points to accommodate customers to connect seamlessly to the bank. I think that CitiBank will be successful as keen-sighted as they take advantage of all the opportunities available with the Internet and technology. If it wants to remain competitive, it has to tick ahead of its rivals in following up with new future customers trends in parliamentary procedure to satisfy their needs.