BUSN 3500 - W20: International Business Entry Strategy Report

This report provides a comparative analysis of the international market entry strategies employed by two major financial service organizations: Royal Bank of Canada (RBC) and Citibank. The paper begins by outlining the intentions of the analysis, which is to compare and contrast the approaches of these two firms as they expand into international markets. It then describes the companies and their respective market entry strategies. RBC's strategy is identified as a combination of joint ventures and acquisitions, while Citibank is characterized as utilizing Greenfield investments. The analysis section examines the specific situations in which these strategies were implemented and evaluates the factors contributing to their success or failure. For RBC, the report highlights the suitability of the market entry strategies in various countries as a key factor for success. For Citibank, the development of a strong employee base and a diverse service portfolio is seen as critical for its success in the Canadian market. The paper concludes by summarizing the key findings, emphasizing the importance of aligning market entry strategies with the specific needs of the customer and the competitive landscape of the financial industry. The report draws upon various sources to support its arguments and provides references to relevant literature. The paper highlights the importance of adapting market entry strategies to the unique needs of different international markets.

Running head: INTERNATIONAL BUSINESS ENTRY STRATEGY
INTERNATIONAL BUSINESS ENTRY STRATEGY
Name of the Student
Name of the University
Author Note

1INTERNATIONAL BUSINESS ENTRY STRATEGY
Table of Contents
Introduction......................................................................................................................................2
Describe the intention of the paper..............................................................................................2
Motivate the reader to continue reading......................................................................................2
Brief description of the companies and their entry strategies..........................................................2
Analysis...........................................................................................................................................3
Examine the situations and the reasons for success or failure.....................................................3
Lessons learned............................................................................................................................4
Conclusion.......................................................................................................................................4
Reference List..................................................................................................................................5
Appendices......................................................................................................................................6
Appendix 1...................................................................................................................................6
Appendix 2...................................................................................................................................6

2INTERNATIONAL BUSINESS ENTRY STRATEGY
Introduction
Describe the intention of the paper
The paper will be based on the comparison of two major service based organizations that
have entered an international market with the help of a particular market entry strategy. The first
organization that has been taken into consideration for analysis is Royal Bank of Canada that is
based in Canada and the other firm is Citibank. Both the organizations operate in the financial
industry and have international operations as well. The entry strategies of the firms will be
discussed with respect to the situation in which the success or failure has been gained in the
industry.
Motivate the reader to continue reading
The paper will provide a detailed picture of the operations that have been developed by
the organizations in the financial industry and their success levels as well.
Brief description of the companies and their entry strategies
The Royal Bank of Canada is multinational financial service based organization of
Canadian origin that has also gained the position of biggest bank in Canada with respect to the
market capitalization. The bank was established in the year 1864 and has employed more than
80,000 employees in different parts of the world. The market entry strategy that has been
implemented by Royal Bank of Canada is joint ventures and acquisitions (Rbcroyalbank.com.
2020).
Citibank is consumer division of the global financial services organization named
Citigroup. Citibank was established in the year 1812 under the name of City Bank of New York.

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The organization operates 2649 branches in around 19 countries that include 723 branches in the
US and 1494 branches that operate in Mexico. Citibank had started its operations in Canada in
the year 1919 and currently employs around 1700 employees along with offices that operate in
Calgary, Vancouver, Mississauga and Toronto (Citigroup.com. 2020). The market entry mode
that has been implemented by Citibank to start its operations in Canada can be termed as
Greenfield investment in which the organization has developed its office spaces and continued
the operations as well (Citigroup.com. 2020).
Analysis
Examine the situations and the reasons for success or failure
The Royal Bank of Canada started its international expansion in order to improve its
presence in different countries. The organization had implemented the strategy of joint venture
and acquisitions in order to start the operations in various countries. For example, RBC had
acquired Banco de Oriente de Santiago de Cuba. On other hand, the organization had opened its
branch in San Juan, Puerto Rico, London and Nassau, Bahamas. The success gained by the firm
is mainly based on suitability of market entry strategies implemented in the different countries
(Ahi et al., 2017, p. 20).
Citibank had implemented the market entry strategy of Greenfield investment in order to
start its operations in Canada in the year 1919. Citibank had been able to maintain its position in
the financial industry of Canada with the support provided by the employees and huge network
of distribution as well. The reason behind success of Citibank in Canada is the development of
an effective employee base and service portfolio (Hofer & Baba, 2018, p. 155).

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Lessons learned
The Royal Bank of Canada has been able to gain success in the financial industry with
the help of suitable market entry strategies. The organization has been able to enhance its
presence in the industry by acquiring other banks in some countries and opening its own
branches in some of the countries as well (Murphy, 2018, p. 18681).
Citibank has gained massive levels of success in Canada with the help of knowledge
related to the needs of the market and fulfilling needs of the customers as well. The organization
has proved to be one of the major financial institutions in the country with the diverse service
portfolio that it offers to the customers (Yoboue, Yi & Antwi, 2017, p. 60).
Conclusion
The report can be settled by stating that the organizations that aim at entering an
international market have to implement effective strategies with respect to needs of the
customers. The two organizations that have been analyzed in the paper namely, the Royal Bank
of Canada and Citibank have also implemented the strategies based on requirements of the
financial industry. The competitiveness of financial industry has also been taken into
consideration by the organizations for the development of market entry strategies.

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Reference List
Ahi, A., Baronchelli, G., Kuivalainen, O., & Piantoni, M. (2017). International market entry:
how do small and Medium-Sized enterprises make decisions?. Journal of International
Marketing, 25(1), 1-21.
Citigroup.com. (2020). Citi | Canada | About Us - History in Canada. Retrieved 10 February
2020, from https://www.citigroup.com/canada/en/about-us/index.html
Hofer, K. M., & Baba, A. (2018). Market Entry Strategies, Innovation and Performance of SMEs
in the Service Sector. Key Success Factors of SME Internationalisation: A Cross-
Country Perspective, 155.
Murphy, M. J. (2018, July). Competing for Emerging Markets: A Resource Dependence Model
of Foreign Market Entry Mode. In Academy of Management Proceedings (Vol. 2018, No.
1, p. 18681). Briarcliff Manor, NY 10510: Academy of Management.
Rbcroyalbank.com. (2020). Get the Personal Banking Products and Services You Need.
Retrieved 10 February 2020, from https://www.rbcroyalbank.com/personal.html
Yoboue, W. K., Yi, K., & Antwi, H. K. (2017). New paradigms in international market entry: A
reflection on the present and the future. International Journal of Scientific Research in
Science and Technology, 3(3), 59-67.

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Appendices
Appendix 1
Appendix 2