Recommendation and Justification
In my opinion, growing through acquisition is a better solution than becoming more mainstream. Growing through acquisition means that the Citibank can purchase banks in the saturated markets. As a result, the product portfolio of the bank will be improved, which will play a great role in helping the bank with its many services. Purchasing bank will help the bank spread out the work, which will take the pressure of the employees off. Thus, the employees will be able to work freely, which will result to provision of high-quality services to the new and esteemed customers. Citibank can use the growing-through-acquisition solution to acquire new companies. The new companies will help the bank develop new relationships in the market. The bank will thus be in a position to alleviate pressure from other sources, providing the employees with better platforms to serve their customers well.
Merging of the company will also help Citibank grow during the hard times. A consumer may be enticed by the bank to switch over to its services while studying the merged companies. Apart from new customers, growing-through-acquisition will help the bank get more market share. Merging of the companies will result to fewer companies in the market. As a result, more of the overall market profit will come to Citibank. Having more market share will be of great help to the company, since it will have control over the credit market. The more market share will also result to the market being monopoly, which means that Citibank will influence or dictate the performance of the overall market. Thus, growing through acquisition is the best that Citibank can use to escape this crisis.
