Strategy Formulation

Strategy Formulation

Before we recommend, there are few strategies that are used by Citibank in this case study . Before we recommend, there are few strategies that are used by Citibank in this case study which are business level strategy, multidomestic strategy, and international strategy.

For the business level strategy, we consider Citibank should opted for a differentiation strategy for its home banking service by offering a superior web banking option with powerful and relevant functionalities wherein customers can access or operate their banking accounts on the net with full confidence. With this business strategy, Citibank not only could acquire new customers, but also retain them due to its leadership image in the banking industry. This strategy can help Citibank to continuous invest in new technology and make it as competitive advantages to make product more valuable. Citibank need to consider offering customize product line to fulfill customer needs, because of the customers are having more or multiple needs.

In additional, Citibank can consider using international strategy which focuses on multidomestic . Thus, it is crucial for Citibank to monitor and forecast the economy direction of the country they would like to expand so they can make better decision to compete in the market place.

For corporate level strategy, Citibank should consider doing related diversification. By doing so, they can increase market power relative to the virtual integration which Citibank conduct their business through e-commerce and having close relationship with suppliers and customers to reducing costs of processing transaction. They can also develop and exploit economies of scope between its businesses and capture synergy benefits from combining similar operation of their different business. This strategy also helps to save cost in order to sharing some of its resources, capabilities and technology or transferring core competencies of one business to another.

For the alternative choices, corporate level strategy is most suitable for Citibank because it focus on close relationship with customer whom it will make increases revenue for the future year of the Citibank .By using e-commerce; it is the most saving cost project for Citibank rather than lay off their workers and it was help to corporate customers gain greater control, given more convenience for their customer, increase efficiency, and reduce costs. Besides that, it is advantages for Citibank to use this strategy which it is no need to setting up a new business, and share resources and capabilities to reduce their risk in the market.

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