Bloomberg Data

Established in 1981 and founded as Bloomberg L.P. by Michael Bloomberg, the previous mayor of New York, along with Duncan Macmillan, Merrill Lynch, and Thomas Secunda. The company is now a global leader in business data, financial insights, and news. 

It is a privately-owned data and software company based in NYC with over 19,000 employees in more than 70 countries, making it one of the largest privately owned firms in the US. 

The company has secured substantial leverage and preference on Wall Street due to its rapid messaging platforms to inform investors about current trends in the market.

Investors in its stock market use the graphs to consider investments for financial commodities. In addition, the organization sources 85% of its gross revenue from financial analysis articles.

It updates its services regularly to maintain a strong market standing and position while attracting more clients to expand its business operations. 

It accounts for ⅓ of the international financial data market, and financial statements are not disclosed publicly as a private company.

Its mission lies in changing the world for the greater good using data and financial information with core values focused on customer service, innovation, collaboration, and doing the right thing. All data and technology are organized to understand the world. 

It is a global distributor of financial data and provides high-quality news services in the modern day. Customers rely on their services to produce accurate market information for making critical financial decisions. Bloomberg L.P.'s generated information includes:

• Financial and economic information
• Legal compliance news
• Research

A few divisions within the corporation include:

• News
• Radio
• Businessweek
• Professional

The private company integrates key decision-makers into a rapid network of information, people, and concepts. Their specialization lies in delivering and presenting news, data, and analytics using innovative technology. 

Across 192 branches, it grants business information and insights globally. In addition, its groundbreaking network using data and analytics provides it with a competitive advantage. 

Within the last decade, there have been accelerated technological advances in imported goods and services, including email and messaging applications, making it a market leader with more than 320,000 professional users and companies across the globe. 

Bloomberg News, BN, is a new facility focused in NYC and is famous for providing economic, financial, and business news to investors and key stakeholders. It is managed by the financial corporation, a financial-data services company. 

Opened in 1991, its Business News division operated across London, Toronto, New York, and Washington. As BN gained awareness globally in the news industry, competitors began to notice it. 

It was known for having a culture driven by editorial work with an intense work environment. New journalists who joined the company received training for working in The Bloomberg Way: A Guide for Reporters and Editors. 

The Bloomberg Terminal, BT, integrates and combines the strengths of news, data, and analytics. It is a 24-hour global financial services system that gives all market industries a transparent and reliable set of information in finance, government, and economics.

The terminal includes financials of various companies and market data across two decades and visual representations, including:

• Graphs and charts
• News reports
• A platform for communication 

Since 1981, business professionals have relied on BT to understand real-time news, analytics, and data to make crucial decisions. It gives information on each asset class which is converged into the multimedia matter for decision-making. 

BT is also known as Bloomberg Professional Services, which connects experts in finance to a network of ideas and information to deliver current data to finance professionals globally. 

These services offered by BPS include:

• Data
• Analytics
• News

These services are given using innovative IP technology that provides financial information to people internationally. 

BT is used by financial analysts globally to perform financial modeling and analysis. Professionals in the trading industry use it to help make trades and orders. Professionals in investment banking also use BT to look for information on M&A transactions.

Lastly, research analysts' inequity and associates use the terminal to prepare reports and cover public organizations. 

Other competing products are Thomson Reuters, Pitchbook, and CapIQ. It is a market leader in data and trading.

Bloomberg Philanthropies: Impact and Initiatives 

The company has a philanthropic organization sub-section that contains all the charitable activities belonging to the founder of the corporation, Michael Bloomberg, who has given $9.5 billion for socioeconomic development. 

The company's leadership has dedicated its profits to its data, financial, and technological aspects, established in 1981 to help BP. 

The resources of BP focus on:

• Public health
• The environment
• Arts
• Government education
• Innovation

Education

Its education program ensures young talent and individuals have the critical competencies to prevail in the 21st century and capitalize on opportunities to enhance their personal and academic growth. This program aims to:

• Increase access to college for low-income yet academically gifted students by receiving support to enroll in top accredited institutions and facilitate their academic success.  
• Support the progression and reformation of the U.S. education system. 
• Prepare high school graduates with the necessary skill set to enter the workforce once they complete their secondary school studies. 

Environment

Its environment program focuses on threats related to sustainability. It supports city and business networks globally. In addition, it protects the earth by: 

• Empowering city networks to decrease their emissions and enhance their sustainability. 
• Progressing the U.S. to green energy that is clean and efficient with minimal wastage. 
• Protecting aquatic wildlife by improving data, preserving the coral reefs, and changing fishing practices. 

Innovation

The innovation programs allow global mayors to take on complex challenges. It drives change by: 

• Supporting and promoting innovation in cities.
• Using data for decision-making in cities.
• Spreading ideas across various cities using competitions. 
• Granting mayors and their employees with practical personnel training.

Arts

The Arts program led by the Philanthropies helps artists, supports funding in cultural companies, and enhances the experience of the audience to improve both the cultural and artistic sectors.

The organization supports the art and improves the standard of living in cities globally by: 

• Generating funding and investment in the arts to improve community health in the U.S. 
• Training management employees in small arts companies. 
• Facilitating partnerships between government and artists to construct art projects in American cities

Public Health

The public health program mitigates diseases by diversifying its solutions locally and nationally to improve general well-being and save lives. 

B.P. prevents illness and disease by: 

• Minimizing tobacco using experimented measures using taxes for smoking.
• Enhancing road safety in nations with high traffic and accident deaths. 
• Increasing the public's engagement and reforms in policies to tackle obesity and mitigate heart disease. 
• Addressing drowning fatalities of infants. 

SWOT Analysis of Bloomberg

Following is the SWOT Analysis:

Strengths 

1. High net worth: The company carries cash reserves where profits equate to $11 billion. It has constructed its resources and capabilities to generate a sustainable competitive advantage in the market.

2. Trained labor force: The corporation has over 19,000 highly qualified, trained, and successful employees. 

The organization focuses its resources on producing skilled employees by providing training programs to motivate them toward organizational goals. 

3. Sustainability initiatives: It acts ethically and sustainably by being involved in ethical IT and growth strategies, a positive organizational culture, and philanthropy projects. 

It uses its expertise in data to overcome climate change and actively invests in a sustainable future by integrating sustainability functions across the company, encouraging sustainable government initiatives, and forming partnerships globally to produce an impact.

4. Product portfolio: The company has allocated several resources to build a strong portfolio of its products catered to financial software tools which can help the company diversify its operations into newer services. 

Weaknesses

1. Critical thinking minimization: There is a lack of critical thinking and problem-solving in the workforce in data, technology, and digitalization. As a result, company growth in the international market is limited. 

2. Poor customer satisfaction: There is a vulnerability in the market for data supply and the performance of communication in the mass media industry, leading to customer dissatisfaction and a lack of customer happiness. This can reduce profits. 

3. Lack of marketing and advertising prominence: It lacks tangible evidence for its marketing and advertising. Machine learning and AI developments also halt its restructuring processes.  

Opportunities

1. Expansion: The U.S. is a feasible and attractive market for Bloomberg LP as it has a development level indicated by economic and technological variables. This presents the company with a competitive advantage and economies of scale. 

2. Company enhancement: The organization needs to improve and focus on consumer purchases and digital market activities. This will make the company more efficient and reduce risk against threats externally. 

3. Small business development: It should create financial software commodities and services tailored to small businesses and individuals to increase its market share and expand its product range. 

Threats 

1. Economic turmoil: Since it is also a financial company, it has to handle global crises, including prominent events such as the 2008 Great Financial Crisis and the COVID-19 pandemic. 

It also has to deal with the costs that government bodies need to implement high taxation for the environment to generate clean energy. 

As a result of COVID-19, there has been a fluctuation in investors' income, leading to less profit. 

2. Profitability: depends on the performance of global services which deal with communication and cultural risks. 

3. New entrant threats: Bloomberg L.P. can use its lower costs associated with gaining market reach and attracting new customers using e-commerce and social media platforms that decrease costs and enhance inefficiencies. 

It also focuses on emerging markets in Asia; this would threaten them since it allows competitors to expand in those markets and seek a competitive advantage.

4. Capitalism: some stakeholders have an opposing viewpoint of the concept related to capitalism and those that are part of the well-being process. 

Bloomberg L.P. Value Chain Analysis 

A value chain analysis reviews activities in an organization that adds value to a good or service before delivery to the final user. Bloomberg L.P. has a unique value chain model for various business sectors. 

1. Inbound Logistics 

Its media corporation has a professional inbound logistics system. Departments are globally interconnected, where 2,300 employees are hired to collect and gather factual information in 172 nations. However, there is a need to minimize the communication gap. 

2. Operations

It has a robust system of allocating responsibility to the right individual at the correct time. In addition, the formulation of the hierarchy system allows management across every operational step in the company.

3. Outbound Logistics

It helps the organization generate profits and revenue. However, the challenge is to disclose the information and keep customers updated to inform investors about the current market situation.  

4. Marketing and Sales

There are departments at the company which focuses on attracting subscribers and promoting financial services using advertising. Online business updates and news are marketing channels for the company. 

5. Service

Company services are updated regularly. They are not hindered by external influences such as political instability or a global outage. It continues to retain function as usual in the event of downfall or threat. 

Conclusion

Although Bloomberg established its business in 1981 within a tight period, it continues to dominate the financial industry. The financial company offers a variety of goods and services and has a reputation for efficiency. 

It has made several achievements that led to its recognition by the public, combined with Michael's philanthropy efforts. 

Bloomberg is currently focused on enhancing customer relationships and has improved its profitability and value-addition process.

After assessing all factors in the SWOT analysis, several advantages and drawbacks have been observed. 

To remain successful, it must stay diligent in its operations and adjust to the latest market trends to maintain its solid international and critical position in the financial services industry, especially in the wake of COVID-19.

Researched and Authored by Haniya Wasim 

Free Resources

To continue learning and advancing your career, check out these additional helpful WSO resources:

• Bloomberg Functions Shortcuts List
• Bloomberg Terminal
• CapIQ
• CNBC
• Public Filings