I admire Bloomberg

Last Sunday New York Times had an interesting article on Bloomberg. This is one company I admire and would like us, finEye, to emulate. How did Bloomberg get to be such a dominant player. Part of it is luck (luck is so important in any business), but you have to give it to Michael Bloomberg and the gang for having a great strategy to beat out Reuters and others.

What worked (and still does) for Bloomberg?
1. Strategic Investments - It is a private company and thus can invest for the long term. Investment in the news business is an example. Keeping the company private was a smart move.
2. Network Effects - Because of the messaging functions on the terminal. It is a known fact that people don't buy Bloomberg terminals just for its data. Customers want to be part of the Bloomberg messaging system. This is the most popular feature of their product. Not having a Bloomberg terminal would mean that you are not a top player.
3. Top notch service - I have talked to many money managers in the last two years and they all had good things to say about Bloomberg's service. I heard comments like "Never had a problem", "They fixed the problem in less than an hour" etc. Bloomberg's unflagging emphasis on meeting users' needs and providing top-drawer service helps it cement long-term customer relationships.