E-Business Strategy and Models in Banks: Case of Citibank

E-Business Strategy and Models in Banks: Case of Citibank

Case Study Questions:

1. Analyze the Citibank value Chain. (3 Marks)

Value chain analysis for Citibank

Citibank, just like any other organization values chain analysis, is based on the element of the e-banking strategy for an organization. The bank does create value via the support and other aspects of its operations. In this case, the chain value analysis will majorly be based on the various elements of the bank operation, such as the use of technology, marketing and sales, general maintenance, and the features of the other infrastructure used by the organization. The application of the new method of technology in its operational procedures, primarily through E-business, has been the core tool by Citibank in the development of the relationship with the various shareholders.  There has seen the general productivity of the bank improves as most customers tend to associate with the latest or modern technology, which reduces the amount of tike that they spend in the banking activities (Abdullah et al., 2016).

The different innovative e-banking solutions that the ban has placed in practice such a s he use of the phone application is accessing the bank’s services, Citi-Direct, E-cards,  Citi-Alert, and the ATMs makes it stay ahead of the other competitors. Citibank online services which are very efficient in assessing the various banking operation and is always available is a vital tool for the organization. Despite the fact the ATMs have become commonly used by traditional banks all over Saudi Arabia, Citibank ATM services stand out of the rest because it is capable of making use of the digital services, which makes it possible for the customers to experience improved quality in the service provided. The company also offers an internet shopping card that uses GSM technology products, which has not been unveiled by the other banks. This set in various categories for different clients such as retail and cooperate clients for the Citibank. The numerous on the bank’s use of e-banking has significantly integrated its value chain and be able to remain innovative in various ways (Andronikidis et al., 2017, October).

The bank has visualized the more significant element of its value chain as one way of realizing the competitive advantage in the very competitive banking sector. In Citibank, e-business aspect of its operation, the actual customer values for the service available have been developed by the use of the last element of technology, which is based on the provision of services that matter most to the clients of the bank. The bank is fully aware of the fact that the customers today are very reliant on the use of the latest technology in terms of internet banking and has, in the process, developed the method of the viable internet strategy for its workers. It has, through the development of the various integrates based banking system promoted the used of technology in the value chain and element which has made Citibank gained popularity in the recent days. It understands the actual need of its client and uses the various views based on the proposed needs in developing the effective value chain system that meets the needs of the clients of the bank. This makes the bank more convenient in terms of the value that the clients want to experience (Abdullah et al., 2016).

2. Explain how e-banking has impacted on the primary and support activities of its value chain. (2 Marks)

Citibank has used the element of e-banking in the provision of the various banking activities that some other banks provided the banking hall over the other mobile platform such as mobile baking services. Such a tool does allow the bank’s clients to access specific banking services at the comfort of their homes and workplaces without having to visit the banks physically. This element much support the value chain of the bank since the system of the bank is a value-based system. The most effective way of integrating the e-banking in a manner that has dramatically helped the business to effectively deliver the primary and the various supports services for Citibank is through the innovative business solution an enhanced service gives that the bank is focusing on. Citibank, therefore, has connected with numerous clients through the e-banking strategy in transforming the actual capacities of the clients and extending the reach of the bank to various locations in the country.  The bank has also employed the use of e-business as a means of transforming the capacities of the clients and is now in a position of expanding its client boundaries and the quality and quality of the services delivered.

Citibank does not only rely on the monetary elements in the creation of a favorable value chain. It has diversified to the other elements, such as the use of the quality service delivery that is based on the greater element of convincing for the clients.  The organization has moved to have the quality of service delivered is excellent and with little focus on the component of the monetary element, but the aspect of customer convenience. For instance the company unveiling the service which connects the clients of the back with a web-enabled services has made it possible for client to obtain benefits which are associated with Internet Of Things and element which continues to build more confidence among Citibank’s clients while at the same time creating competitive advantage over the other banks that operates in Saudi Arabia.  The vision and the mission statement of the bank have been developed to encourage the client into trying the bank to witness the service of the advance delivery that goes beyond just the monetary element (Eweoya et al., 2016).

3. Explain the tangible and intangible sources that could influence the differentiation strategy of Citibank. (3 Marks)

The bank’s differentiation is coined in the strategy, which has enabled the bank to achieve much of what it has made over time, which is the e-business strategy. The tangible source of the product differentiation for Citibank comes from the old ways that are common among the bank is in the same industry. Such products included the actual banking infrastructure, the ATMs, and the internet shopping cards, which are some of the tradition assets (tangible) but helps in the operation between the bank and its clients.  Traditionally, the customer had to be physically present at the banking hall or the ATMs to obtain services related to the bank. However, banks have had to move from the tangible to the intangibles system as a means of differentiation strategy (Andronikidis et al., 2017, October).

This strategy is where the bank has come up with an e-banking strategy. The bank has, in the process, focused on pursuing the cot advantages to delivery of exceptional customer services in support of internet banking services, and this has resulted in the intangible sources of the differentiation strategy. Such strategy has come up with; 24hours online banking, GSM notification, Corporate internet banking services, retail internet banking services, among other methods of e-banking services.

4. How could IT/e-banking assist an organization/ a bank to achieve a competitive advantage in the marketplace? Explain through the case of Citibank. (2 Marks)

Citibank’s competitive advantage can significantly be attributed to e-banking or information technology. The bank has developed a strategy that has transformed its operation from the tradition banking procedures used by the competitors to a modern banking scenario tat attracts a considerably more significant number of clients. The company has developed various forms of digital banking methods from online or internet banking, GSM notification technology, and another service that allows the customers to get aces to the banks’ critical services without having to visit the actual banks saving them time and increasing on the element of convenience.  The bank has attracted customers who do value the aspect of comfort in banking through these E-banking strategies (Eweoya et al., 2016).

The bank also through the e-banking platforms that do promote creation and innovation. The banks have a more developed IT infrastructure, which makes most of its services advanced and helps the bank’s client remain ahead of the other clients through the capacity of accessing the various services and in a more efficient way. The bank, through e-banking, has gained a competitive advantage through the development of the innovative methods of banking, such as the vast use of internet banking, which also promotes having and another element of banking goals among its clients. The bank’s client has experienced improved capacity of e-banking aspects such as corporate and retail customer interaction through the use of the e-banking strategy that the bank embraces (Oliveira et al., 2016).

References

Ayo, C. K., Oni, A. A., Adewoye, O. J., & Eweoya, I. O. (2016). E-banking users’ behavior: e-service quality, attitude, and customer satisfaction. International Journal of Bank Marketing, 34(3), 347-367.

Mansour, I. H. F., Eljelly, A. M., & Abdullah, A. M. (2016). Consumers’ attitudes towards e-banking services in Islamic banks: the case of Sudan. Review of International Business and Strategy, 26(2), 244-260.

Martin, N. C., Igboanugo, D., Freeman, E., Oddih, C. S., Sajjad, M., & Sajjad, M. (2018). A Theoretical Insight on E-Banking (Internet Banking) Framework in Developing Countries. In Proceedings of the International Conference on e-Learning, e-Business, Enterprise Information Systems, and e-Government (EEE) (pp. 68-75). The Steering Committee of The World Congress in Computer Science, Computer Engineering, and Applied Computing (WorldCom).

Paltayian, G., Georgiou, A. C., Gotzamani, K., & Andronikidis, A. (2017, October). Combining Quality Management Tools With Quantitative Approaches to Improve e-Banking Οperations. In Global Conference on Services Management (GLOSERV 2017) (p. 273).

Rodrigues, L. F., Costa, C. J., & Oliveira, A. (2016). Gamification: A framework for designing software in e-banking. Computers in Human Behavior, 62, 620-634.