Bloomberg Research Paper

Michael Bloomberg founded Bloomberg L.P. back in 1981 with the help of Charles Zegar, Thomas Secunda, and Duncan Macmilan. Mr. Bloomberg believed that technology was ultimately going to have an impact on trading and market analysis and so he wanted to provide investors with important data at the same time so they can go about making informed decisions. In order for investors to make informed decisions, they need data, news, and research that are up to date and can be delivered quickly. This is when their core product, the Bloomberg Professional (also widely known as the Bloomberg Terminal), was invented. The Bloomberg Professional analyzes the risk as well as the opportunities for investments based on the risk involved.

Merrill Lynch was one

This method can be traced to the Theory of Franchise Value. "The economic theory of franchise values elements are: revenue, cost, and barrier to entry. A valuable franchise must have a sizable revenue base. This could come from selling something in low volume at a high price. Bloomberg terminals are an example. Bloomberg leases proprietary computer terminals with information that is important to financial market participants, particularly bond traders. These users have large budgets and a strong need for the service, so that even though it is not a mass market, Bloomberg can charge high prices and earn tremendous revenue” (King, 1999). The general market for the Bloomberg terminal are Wall Street firms as well as smaller firms to help ease trading. By providing them with at-the-moment data to make informed decisions while taking into consideration the risk and opportunities available to them, this makes the Bloomberg terminal a very useful product. By that being said, their budgets to have this

Taking into account that most of their revenues come from the Bloomberg Terminal, they need to be up to date with their competitors and make sure that their product is the best product out there and that their product stands out from the rest. If their competitors increase their technology and marketing strategy, this can ultimately lead to a downfall in Bloomberg’s sales. That is unlikely to happen anytime soon due to the technology being used behind it, but they should always try to advance their product. I would recommend to also decrease their prices to somewhat match their competitors. That would diminish their competition to some extent because if customers have to choose one or the other for a similar if not equal price, they would go with the one that has a better reputation and more functionality. Time is money in an investors mind. Providing at the moment data is detrimental to a firm’s success so although Bloomberg has had a very successful past with providing this information to their investors, competitors could also catch up to their speed. I also would recommend Bloomberg to try to look out for new customers. Recently in the NY times, it was said that “ Bloomberg is testing a Web-based product aimed at law firms.” (Clifford, 2009) Another issue that I think should be fix is trying to focus on their main source of income and expanding more in that field. For example, Bloomberg