The Blue Ocean Strategy (BOS) Sequence of Citibank
This week in a college class I am attending, we are looking at the sequence of the Blue Ocean Strategy. And more specifically, I have been researching Citibank.
Today, I would like to examine Citibank and evaluate the sequence in accordance with Kim & Mauborgne’s Blue Ocean strategy. To start off, let us examine the four sequences or steps and how they relate to Citibank.
1. Buyer Utility. The question: “Is there exceptional buyer utility in your business area?” Is your company truly offering something exceptional to the public or is it offering something that has already been seen? The answer: no. After looking into Citibank’s offerings of banking, they do not offer anything outside normal for large banking companies today.
2. Price. The question: “Is your price easily accessible to the target mass of buyers?” Is your product priced so you are not excluding a large amount of potential customers? The answer: yes.
3. Cost: the question: “Can you attain your cost target to profit at your strategic price?” Is the company still able to make a reasonable profit by offering the product at a reasonable price? The answer: yes.
4. Adoption: the question: “What are the adoption hurdles in actualizing your business idea? Are you addressing them upfront?” What are the conflicts that will arise with the new product? Is there a large sum of money that will need to be paid up front for new processes? Will there be initial resistance from employees and/or customers? The answer: yes
As one can see, Citibank did not make it that far in the sequence of the BOS. What banking companies really struggle in is that none of them truly offer something amazing or exceptional compared to all other banks. They may for a period of time, but then other companies catch up. For a while, automated teller machines (ATMs) were the selling point, then free checking, then online banking, etc. I am almost getting the feeling that for some businesses, such as banks...