caseism

Citibank’s Co-Operative Strategy in China: The Renminbi Debit Card Case Solution & Answer

This Case is about JOINT VENTURES

PUBLICATION DATE: January 22, 2009 PRODUCT #: HKU806-HCB-ENG

Since the beginning of its operations in China in 1902, the international banking giant has prefered to start offices as divisions (when permitted by the authorities) rather than subsidiary companies. By this time, Citi had recognized the rate of its growth in China had been quite slow. Thus, the bank reviewed its strategy and determined to enter the marketplace as a truly local, or set, bank. Citi’s July 2008 deal with China Unionpay (“CUP”), China’s only national bankcard organization, lets Citi’s debit cardholders to appreciate the benefit of accessibility to CUP’s vast network in China. The deal is the most recent landmark in the bank’s strategy to confirm its existence in the emerging and fast growing China market through a series of strategic alliances. Has its strategy switched and began entering such cooperative alliances? What are advantages and the dangers related to using such combined strategies?

Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY