Citibank's Cash and Trade Group division transformed itself into an e-business, with the strategic intent of converting traditional money management business into an e-business framework. This case discusses how Citibank is using its traditional assets and integrating Internet initiatives into its e-business strategy to create sustainable competitive advantages. Competition in the cash and trade business is becoming intense and a new breed of competent and aggressive competitors is vying for the market, including technology companies interested in B2B e-payment. Citibank is responding to the competition by continually evolving its e-business strategy--connect, transform, extend. Also looks into the challenges that Citibank e-Business Group is facing in developing a single global web platform for the corporate market. The focus is on how Citibank is developing an e-business product that would serve the highly segmented market and how to encourage these markets to use a global single platform online. At one end of the spectrum are multinationals and top-level domestic corporates that operate sophisticated treasuries, and at the other end are companies and small- and medium-size businesses that are not yet ready to upgrade and transform their systems.
Question 1
Economic
* At the time of the global current crisis that we still see relevance of today, it put significant downward pressure on interest rates as treasuries around the globe adjusted their rates. * Citibank revenues as the global crisis forced the firm to record losses. * Citibank has to rethink its strategies to avoid buyouts, bailouts, and takeovers.

Environmental * Geographic borders became less and less a factor in the global economy with increased technology that boasted a globalized economy * Bank could not simply use head-count reduction and belt-tightening effort * Bank customer did not embrace brokerage of life insurance services * Regulation had makes an effort to cap fees or requires greater transparency of bank charge. * Citibank cut 17,000 positions.

Social & Demographic * With the increasing widespread ease of access to the internet, Citibank saw a growing need for an upgrade in their online services * Citibank saw an increased use of web based technologies worldwide that in turn increased concerns about data security. * Commercial cards enabled customers to receive consolidated spend data for all countries within Asia. * Clients can benefit from in consistency in products, delivery, and services. * Only balanced card issuers are able to deliver local-currency and local-language programs to clients worldwide by using its own proprietary systems and customer service operations.

Technological * A boost in a global reliance on IT and the birth of web based solutions in the early 2000’s elevated Citibank’s need to diversify its portfolio offerings * New technology required major investments in people, risk, and technological services that some banks were not ready to make or had the assets to make happen. * Citibank invested millions of dollars in the infrastructure required to move and monitor cash balances online. * Main focus or goal is to provide corporate customers the most cost effective, cutting-edge, reliable, and secure solution.