Chapter 4.1. Key Competitive Advantages


As of today, Citigroup management identified the following five key competitive advantages, which they hope will allow the company to recognise and pursue market opportunities better than any other financial service firm:
•    Global presence
•    Distribution
•    Strong brand
•    Scale and efficiency
•    Full product range

Though, Citigroup does not have the widest network at home, internationally it has the best presence among all US financial institutions. The company is physically present in more than 100 countries, in many for more than 100 years. Citigroup counts of these deep roots to provide it with insight into what clients want and where the opportunities for growth reside.

If also has the biggest distribution: Citigroup serves more people than any other financial service company, utilising all possible channels varying from thousands of bank, consumer finance, and Smith Barney branches to ATMs, automated loan machines, trading desks, online premises, and many others.

According to Interbrand, Citi has the strongest brand in the financial services and 11th strongest brand in the world. Today it is estimated to be worth of US$21.5 billion, up 7% compared to 2005. Citigroup relies on its brand in order to attract and retain the most talented employees all over the world, but also in building the strongest clientele network.

Strong margins, high capital generations provide scale and efficiency to grow in various environments, geographically and product wise.

Having a full product range, the broadest in the industry Citigroup again anticipates attracting and retaining clients in parts of the globe.

Citigroup’s strategy bases on the anticipated world GDP growth, in particular on market reforms in developing countries and consequent emergence of middle class, as well as on the rise of the world trade. The company analysts estimate that about 750 million new potential customers, mostly outside the US, will appear in the next five years. Citigroup also intends to integrate its various products for customer benefits.