Figure 1: Market Segmentation by Outlet and Service
Product/Services
Share
Audio
1.0%
News reporting text
50.0%
Photographs and graphics
30.0%
Video
19.0%
Outlet
Share
Newspapers
50.0%
Television (free-to-air)
20.0%
Cable and satellite TV
10.0%
Magazines
10.0%
Radio
5.0%
Internet
5.0%
Sources: (Buxton, 2005) (Browne, 2006) (Davis, 2009)
E. Competition and Competitive Edges
Competitors in this market are highly fragmented and many have financial services in addition to financial news analysis. Bloomberg has seven lines of business and each addresses the need for a varying approach to delivering financial data. AP is a syndicated news service which strives at broad market research, yet does not concentrate on depth of analysis as much. All competitors have econometrics-based modeling systems for interpolating market direction, and all have specific approaches and formats that serve to differentiate their services. The need for a simply-designed user interface, which none of them have, combined with a simple pricing model would serve to be an effective differentiator.
F. Estimates Market Share and Sales
The following table provides an analysis of market share by provider. Bloomberg's biggest rivals are Thomson-Reuters in the U.S. And globally, Agencie and News Corp.
Major Player
Market Share
The Associated Press
30.0%
Getty, Inc.
Ongoing Market Evaluation
What's critically important is for the proposed new venture is to define a unique position in the market with a Web-based delivery model and evaluate the competitive advances of each competitor makes to this position. At present each of the competitors have overly complex graphical interfaces, with Bloomberg's taking weeks to learn how to use. The usability of the advances functions of each of these services is significant and takes time to learn. By evaluating customer satisfaction of competitors, pricing, delivery changes and direction the proposed venture can create a significant niche for itself through competitive monitoring.
References
Bowie, M. (2009, May). IMD Reference: Bloomberg Takes Lead Share. Inside Market Data, 24(34), 1,3.
Andrew Browne. (2006, September 11). China Adds Restrictions on News, Financial Data. Wall Street Journal (Eastern Edition), p. A.2.
Philip Buxton. (2005, May). Straight from the source. Revolution,30-34.
Avram Davis. (2009, October). Bloomberg To Buy BusinessWeek. Mergers & Acquisitions Report, 22(42), 14.
Andrew Edgecliffe-Johnson. (2009, April 27). Bloomberg broadens its portfolio. Financial Times,16.
Muntermann, J.. (2009). Towards ubiquitous information supply for individual investors: A decision support system design. Decision Support Systems, 47(2), 82.
