The following Strategic Management plan evaluates Citigroup's competitive position and internal and external environments to determine strategic direction. Alternative strategies are then derived and chosen. The plan recommends that Citibank select to expand its insurance business to foreign markets, by focusing on online banking and the consumer demand for online financial processing. It analyzes how Citibank differentiates itself from the competition by offering a broad line of products and services and exploiting cutting edge technology to support global online banking transactions. It also explores the threats, opportunities, weaknesses, and strengths impacting Citibank's success in competing for online banking market share.
Online banking has brought traditional financial functionality into Cyberspace. The Compounded annual growth of online banking since 1994 has been 80%. Worldwide, more than 100 million households now bank online. Looking ahead, usage is projected to increase to 50+ million U.S. households. Worldwide, the total is expected to triple to 300 million or more households (Online Banking, 2003).
Internet Banking enables financial institutions to market and sell new products, increase their end user base and build longer lasting relationships. Launching online banking services requires minimal demand on the banks existing infrastructure and resources. With Internet Banking, the Internet branch serves as the financial hub for end users' online banking needs and strengthens the brand and image. "Banks view online banking as a powerful "value added" tool to attract and retain new customers while helping to eliminate costly paper handling and teller interactions in an increasingly competitive banking environment."
The key benefits of online banking to businesses and consumers are time and convenience. This convenience is the driving force in the demand and increase of online banking. T
Below are the top 5 reasons why people have chosen to bank online:
*Convenience: Unlike your corner bank, online banking sites never...