Case Study: Citibank’s E-Business Strategy for Global Corporate Banking
Please prepare an analysis of this case. Your write-up should be 4 to 7 pages. Each of the following questions should be addressed individually:
1. What are the impacts of the internet on the competitive landscape of corporate banking? (Hint: use Porters 5 forces) The statements below are the impacts of the internet on the competitive landscape of corporate banking: * Intense competition which further increased the rivalry amongst existing competitors * The challenges of serving corporate customers with a variety of needs in terms of size of organization and how progressive and open to change these companies were. Based on the resistance received this could create a threat of substitute products or services. * The aggressive changes that were being made by Citibank placed them away head of the competition. This lead in front of their competitors could create new alliances to limit the gap. * The new markets that are potentially Citibank’s creates a challenge to lower cost, improve efficiency while still meeting the needs of the customers. * The substitute products such as local banking and or older systems which may not be as progressive as Citibank in terms of technology. 2. What has Citibank done to differentiate its e-business products from those of its competitors?
Citibank was able to differentiate its e-business products from those of its competitors by focusing on customer satisfaction instead of only the bottom-line. Customer satisfaction was focused on the support, technology and response time, making sure the clients felt confidence in the brand. The customer service along with the products are the reasons why Citibank is able to keep its recognition and loyalty throughout the world. Citibank used many technologies to get more clients satisfied such as ATM’s, telephone lines, and the paperless system of payments which is a secure business transaction for the customer. 3. What can Citibank do to create competitive advantages?
In order for Citibank to create competitive advantage the following processes can be implemented: * Find a way to lower prices on products while still increasing the bottom line. * Mobile and Web is very important to many individuals so having the ability to initiate transitions via the previously mentioned methods will put them ahead of the competition. 4. How has Citibank successfully converted its traditional money management business into an e-business? During the process of transforming traditional assets to digital assets, what issues should a company like Citibank take into account to ensure successful implementation?
Citibank successfully convert its traditional money management into an e-business system by giving convenience to the customers, (example the technology investments), flexibility, and staying ahead of the competition by investing in infrastructure that would only make the experience better for the customer.
The transformation was done by becoming more centralized and focusing on the customers and investing in the right technology to improve efficiency and customer satisfaction. For example use of systems to manage the automatic processing of transactions which reduces the time is takes to process and human errors as well. Also the online and real time processing with the direct access to the information for customers and employees, efficient working, cost savings and comfort for customers.
During the process of transforming traditional assets to digital assets, the issues Citibank should take into account to ensure a successful implementation are, consistency of data and the learning curve/impact for the customer. Citibank successfully responded to these changes with the different alliances with technological companies such as Oracle, SAP, Commerce One, building a new global infrastructure integrating products in new ways....