Gate China 2014 BLOOMBERG LP
Gate China 2014 BLOOMBERG L.P. Bruno Borghetti De Queiroz Campos – Pablo Mejia
Business Overview
Bloomberg is the leading company for financial news and information around the world. Founded by Michael Bloomberg (former mayor of New York) in 1982, Bloomberg has consistently repositioned itself as an innovative company, generating employment for more than 15,000 employees in 192 locations around the globe. Although the company was founded as a provider of financial information using Bloomberg Terminals, as of 2014 they diversified into the areas of Professional Service, Enterprise, Industries and News & Media. The Professional Services area is basically dedicated to provide last minute information such as data, news and analysis for brokerage firms on a 24/7 basis. Enterprise division is centered on corporate customers and is constantly thriving to offer solutions that can lower cost, improve efficiency and enable a company’s growth. This area of the company is largely interrelated with the Industries division since both areas tie companies’ solutions to industry overviews. In this sense, the Industry area focuses on delivering data, analysis and tools necessary to work in a faster and smarter way. The area primarily focuses on the government, law, energy and sports industries. This area also focuses on delivering regulatory and legislative data of a particular sector. The last area of Bloomberg’s portfolio is News & Media (N&M). Bloomberg N&M delivers news, data and analysis through books, television and radio broadcasting, digital media, and magazines. This division is arguably the most popular division in Bloomberg given the variety of media outlets they own. Outlets such as Bloomberg TV and Radio Channels, Bloomberg.com and BusinessWeek among other outlets have positioned the portfolio for years.
Operations in China Considering the rising importance of the Chinese market, in 2010 Bloomberg expanded its Chinese-language Bloomberg service. Furthermore, the company grew its operations in the Chinese market by opening a new plant in Shanghai in the second quarter of 2011. In this office Bloomberg introduced new services for Foreign Exchange options and currency swap to help companies hedge against risk. Additionally, in 2013 Bloomberg expanded its N&M division in China and signed a licensing agreement with Modern Media Holdings to publish a Chinese version of BusinessWeek in Hong Kong. It is worth noting that Bloomberg had already signed a
similar agreement with Media holdings for the China mainland operation of Bloomberg BusinessWeek.
Financial & Operating Statistics Bloomberg Worldwide is a private company. No financial information is available.
Revenues Net Income Market Capitalization
-------------------
Price per Share Stock Exchange Number of Employees # of Locations worldwide
-------------15,500 192
SWOT Analysis
Strengths 1. Strong brand 2. Large distribution (many countries) 3. Established position 4. Strong reputation 5. Large news base 6. Bloomberg terminal technologies 7. Large portfolio of products Opportunities 1. 2. 3. 4.
Growth of US capital Markets Growth of Emerging Markets Growth of Asian Markets Rising consumption of online content
Weaknesses
1. Privacy scandals
Threats 1. Competitors with new financial platforms 2. Competitors with cheaper financial platforms 3. Negative trends in magazine publishing industry.
Company Visit Questions 1.) What are the main obstacles that the company has faced since the operations were established in China? 2.) Of all your divisions, which has leveraged growth in China and where do you find the greatest opportunity for further growth?
3.) Has the regulatory and political environment in China affected Bloomberg in any way? 4.) How does Bloomberg operation in mainland China differ from that one in Hong Kong? And how do they interact between each other? 5.) Bloomberg chat is a great asset of Bloomberg, how can Chinese regulators affect this asset and how do you see the use of this asset in the near future? 6.) Many governments have an influence over the press and Bloomberg is well know from how fast and reliable it has released important news. How does Bloomberg work with the possibility of government influence over the press? 7.) How important of an asset is The Bloomberg chat? How can this important asset play a major role in selling the Bloomberg terminal?
Sources: 1. Marketline Report: Bloomberg L.P. 2. http://www.bloomberg.com/company/# 3. Bloomberg employee: Juan Bernardo Mejía (Sao Paulo Office)
Business Overview
Bloomberg is the leading company for financial news and information around the world. Founded by Michael Bloomberg (former mayor of New York) in 1982, Bloomberg has consistently repositioned itself as an innovative company, generating employment for more than 15,000 employees in 192 locations around the globe. Although the company was founded as a provider of financial information using Bloomberg Terminals, as of 2014 they diversified into the areas of Professional Service, Enterprise, Industries and News & Media. The Professional Services area is basically dedicated to provide last minute information such as data, news and analysis for brokerage firms on a 24/7 basis. Enterprise division is centered on corporate customers and is constantly thriving to offer solutions that can lower cost, improve efficiency and enable a company’s growth. This area of the company is largely interrelated with the Industries division since both areas tie companies’ solutions to industry overviews. In this sense, the Industry area focuses on delivering data, analysis and tools necessary to work in a faster and smarter way. The area primarily focuses on the government, law, energy and sports industries. This area also focuses on delivering regulatory and legislative data of a particular sector. The last area of Bloomberg’s portfolio is News & Media (N&M). Bloomberg N&M delivers news, data and analysis through books, television and radio broadcasting, digital media, and magazines. This division is arguably the most popular division in Bloomberg given the variety of media outlets they own. Outlets such as Bloomberg TV and Radio Channels, Bloomberg.com and BusinessWeek among other outlets have positioned the portfolio for years.
Operations in China Considering the rising importance of the Chinese market, in 2010 Bloomberg expanded its Chinese-language Bloomberg service. Furthermore, the company grew its operations in the Chinese market by opening a new plant in Shanghai in the second quarter of 2011. In this office Bloomberg introduced new services for Foreign Exchange options and currency swap to help companies hedge against risk. Additionally, in 2013 Bloomberg expanded its N&M division in China and signed a licensing agreement with Modern Media Holdings to publish a Chinese version of BusinessWeek in Hong Kong. It is worth noting that Bloomberg had already signed a
similar agreement with Media holdings for the China mainland operation of Bloomberg BusinessWeek.
Financial & Operating Statistics Bloomberg Worldwide is a private company. No financial information is available.
Revenues Net Income Market Capitalization
-------------------
Price per Share Stock Exchange Number of Employees # of Locations worldwide
-------------15,500 192
SWOT Analysis
Strengths 1. Strong brand 2. Large distribution (many countries) 3. Established position 4. Strong reputation 5. Large news base 6. Bloomberg terminal technologies 7. Large portfolio of products Opportunities 1. 2. 3. 4.
Growth of US capital Markets Growth of Emerging Markets Growth of Asian Markets Rising consumption of online content
Weaknesses
1. Privacy scandals
Threats 1. Competitors with new financial platforms 2. Competitors with cheaper financial platforms 3. Negative trends in magazine publishing industry.
Company Visit Questions 1.) What are the main obstacles that the company has faced since the operations were established in China? 2.) Of all your divisions, which has leveraged growth in China and where do you find the greatest opportunity for further growth?
3.) Has the regulatory and political environment in China affected Bloomberg in any way? 4.) How does Bloomberg operation in mainland China differ from that one in Hong Kong? And how do they interact between each other? 5.) Bloomberg chat is a great asset of Bloomberg, how can Chinese regulators affect this asset and how do you see the use of this asset in the near future? 6.) Many governments have an influence over the press and Bloomberg is well know from how fast and reliable it has released important news. How does Bloomberg work with the possibility of government influence over the press? 7.) How important of an asset is The Bloomberg chat? How can this important asset play a major role in selling the Bloomberg terminal?
Sources: 1. Marketline Report: Bloomberg L.P. 2. http://www.bloomberg.com/company/# 3. Bloomberg employee: Juan Bernardo Mejía (Sao Paulo Office)
