Citibank's E-Business Strategy for Global Corporate Banking Case Study

Citibank's E-Business Strategy for Global Corporate Banking - Case Study Example The present research has identified that technology has brought enormous changes to the business practices. Talking about businesses, technology is not restricted to any one kind of business. With the changing technology it has become an essential part of the business practices to adapt accordingly. Changes in technology have been followed globally and by every business sector. One of the most important technologies that have caused the most powerful impact on the businesses is â€Å"Internet†. It has revolutionized the ways of doing business. The most enticing change that it has brought by the â€Å"Internet† is â€Å"E-Commerce†. Firms and industries have shifted towards E-commerce. Many firms have used this technology to set their competitive advantage. Use of internet for conducting business has helped in globalization. It has changed the dimensions of competition throughout the world. Use of internet has transformed the firms’ relationships with the c ustomers, employees, suppliers and other logistic partners. E-commerce is basically the use of internet technology to buy and sell goods. E-commerce has led to the emergence of new markets. It has led to the reduction in costs. Many firms that were unable to adapt the concept of using E-commerce have suffered. As mentioned before, E-commerce is not restricted to any one business sector. Banking is one sector that has faced a huge impact of E-commerce on its business practices; to such an extent that E-commerce has now become directly linked with the profitability (BECKER, S. A. 2008; MEHTA, V., SUDAN, A. S., & DAWRA, S. 2003; MALHOTRA.P &SINGH.B. 2009) Use of internet has changed the customer needs and expectations. It has also influenced the strategic decision-making of the firms. Banking sector had to come up ways in order to successfully adapt to this new technology. They needed a way to translate their traditional strengths into an internet-based business model so it could add m ore value for the customers. Use of internet has changed the infrastructure for the delivering of goods. Is has increased the time-span for the customers. Now they can connect with the bank at anytime and anywhere. This means that there has been an increase in the banking hours and customers can avail the banking facilities at anytime; especially the transaction facilities. Use of internet to facilitate the routine business practices has led to an immense increase in competition between the firms. Even the use of internet has to be done in a differentiated way. This is exactly how the Citibank incorporated this revolutionary technology into its business model. It not only proved to be successful but set an example for all the other firms that are present within the banking sector (BECKER, S. A. 2008; ENGLER, H., & ESSINGER, J. 2000; UNITED NATIONS. 1998) Point of Differentiation At the end of 1990, Citibank made a change to its corporate bank activities. It changed its corporate bus iness strategy form decentralized to centralized strategy. The bank aimed to build a single