The strategy of Citibank (China) Co. Ltd ("Citi") in China has evolved as the business environment has changed. Since the beginning of its operations in China in 1902, the global banking giant has preferred opening offices as divisions (when permitted by the government) rather than subsidiary companies. By this time, Citi had comprehended the rate of its growth in China had been quite slow. Therefore, the bank decided to enter the market as a set, or truly local, bank and reviewed its strategy.
Citi's July 2008 agreement with China Unionpay ("CUP"), China's only national bankcard organization, lets Citi's debit cardholders to enjoy the advantage of accessibility to CUP's vast network in China. The agreement is the most recent milestone in the bank's strategy to establish its presence in the emerging and rapidly growing China market through a series of strategic alliances. Has its strategy changed and started entering such co-operative alliances? What are advantages and the risks related to using such cooperative strategies?
PUBLICATION DATE: January 22, 2009 PRODUCT #: HKU806-HCB-ENG
This is just an excerpt. This case is about GLOBAL BUSINESS
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