Verticle and Horizontal Markets


Verticle and Horizontal Markets or Verticles and Horizontals

A vertical market (often referred to simply as a “vertical”) is a group of similar businesses and customers that engage in trade based on specific and specialized needs.

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Some common examples of vertical markets:

A horizontal market is a market which meets a given need of a wide variety of industries, rather than a specific one.

In technology, horizontal markets consist of customers that share a common need that exists in many or all (vertical) industries. For example, customers that need to purchase computer security services or software exist in such varied industries as finance, healthcare, government, etc. Together, these customers constitute the security horizontal market. Other examples of horizontal markets include computer storage, accounting, desktop graphics, computer-aided design, sales force automation, and human resources.

Comparison with horizontal markets

A vertical market is a market which meets the needs of a particular industry: for example, a piece of equipment used only by semiconductor manufacturers. It is also known as a niche market.[1]

A horizontal market is a market which meets a given need of a wide variety of industries, rather than a specific one: for example, word processing software[2] or machine-to-machine technologies. On occasion a horizontal market can be highly specialized at the same time, for instance consider the market for converting mainframe databases developed with the tools of a particular company. The market for such a database conversion service might involve many vertical markets (aerospace, manufacturing, banking, etc) but nevertheless be labelled “niche” if the database technology is technically obsolete and no longer mainstream.

References:

http://en.wikipedia.org/wiki/Vertical_market

http://en.wikipedia.org/wiki/Horizontal_market

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