Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : LDS0006

Year : 2004

Industry :Internet and e-commerce

Region : USA

Teaching Note: Not Available

Structured Assignment : Not Available

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Introduction: “Michael is on amission now. He realizes he can transforman industry. It’s very rare in life that you have that opportunity... He definitely wants to be king of the media. And he’s coming at it through the back door,” saidMorrisW. Offit, founder, Offitbank.2 In a span of two decades, Michael Rubens Bloomberg (Michael Bloomberg) had transformed his company, Bloomberg L.P. (Bloomberg), from an upstart into a media and financial-data giant. InAugust 1981, after being fired from Salomon Brothers, Inc. (Salomon Brothers), Michael Bloomberg used his $10 million partnership payout to launch his own company.3 Initially, he developed an online financial information systemcalled theBloomberg terminal that allowed the users to analyse bond data. In 1990, the Bloomberg News Service, which provided information to newspapers and magazines such as The Economist, The New York Times, The International Herald Tribune, and USA Today, was launched. The company commenced its 24-hour radio and television news services in 1992 and 1993 respectively. Gradually, the company introduced Bloomberg Personal, a finance magazine; TRADEBOOK, an electronic platformfor trading securities; and also started publishing the Bloomberg Press line of investment books.

By the late 1990s, Bloomberg had emerged as a strong player in themarket data industry. The company’s revenues increased year by year, and it started to make dents in the market share of its competitors like ReutersGroup PLC(market leader in the financial-data industry at that time), Bridge andDowJones (Exhibit II).Analysts attributed the success ofBloomberg to the innovative strategies ofMichaelBloomberg.But inMarch 2001,MichaelBloomberg stepped down as the chairman of the board of Bloomberg and declared his intention to stand as the Republican candidate for the post of New York City Mayor. In November 2001, Michael Bloombergwas elected as theNewYorkCitymayor.AfterMichaelBloomberg left the helmof Bloomberg, the analysts were sceptical about the prospects of the company. An analyst4 said, “Bloomberg’s departure ‘has got to hurt’. You’re removing an egotistical and charismatic leader. Whatever he brought to the table is now gone.”