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Vertical market
 
 
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A vertical market is a group of similar business
Business

A business is a legally recognized organization designed to provide good s and/or Service to consumers. Businesses are predominant in capitalism economies, most being privately owned and formed to earn profit that will increase the wealth of its owners....
es and customer
Customer

A customer, also client, buyer or purchaser is the buyer or user of the paid products of an individual or organization, mostly called the supplier or seller....
s which engage in trade based on specific and specialized needs. Often, participants in a vertical market are very limited to a subset of a larger industry (a niche market
Niche market

A niche market is a focused targetable portion of a market.By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers....
). An example of this sort of market
Market

A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy....
 is the market for point-of-sale
Point of sale

Point of sale or point of service can mean a retailing, a checkout counter in a shop, or the location where a financial transaction occurs....
 terminals, which are often designed specifically for similar customers and are not available for purchase to the general public.

activities of participants within any given vertical market are typically similar in that they aim at solving the same or similar problems. These markets are typically competitive
Competition

Competition is a rivalry between individuals, groups, nations, or animals, for territory, a niche, or allocation of resources. It arises whenever two or more parties strive for a goal which cannot be shared....
, due to the overlapping focuses of the products and services that are provided to the customers.

The single defining characteristic of the participants in a vertical market is competition within a well-defined segment.

Horizontal market
Horizontal market

A horizontal market is a market which meets a given need of a wide variety of industries, rather than a specific one....
 participants often attempt to meet enough of the different needs of vertical markets to gain a presence in the vertical market.






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Encyclopedia


A vertical market is a group of similar business
Business

A business is a legally recognized organization designed to provide good s and/or Service to consumers. Businesses are predominant in capitalism economies, most being privately owned and formed to earn profit that will increase the wealth of its owners....
es and customer
Customer

A customer, also client, buyer or purchaser is the buyer or user of the paid products of an individual or organization, mostly called the supplier or seller....
s which engage in trade based on specific and specialized needs. Often, participants in a vertical market are very limited to a subset of a larger industry (a niche market
Niche market

A niche market is a focused targetable portion of a market.By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers....
). An example of this sort of market
Market

A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy....
 is the market for point-of-sale
Point of sale

Point of sale or point of service can mean a retailing, a checkout counter in a shop, or the location where a financial transaction occurs....
 terminals, which are often designed specifically for similar customers and are not available for purchase to the general public.

Markets

The activities of participants within any given vertical market are typically similar in that they aim at solving the same or similar problems. These markets are typically competitive
Competition

Competition is a rivalry between individuals, groups, nations, or animals, for territory, a niche, or allocation of resources. It arises whenever two or more parties strive for a goal which cannot be shared....
, due to the overlapping focuses of the products and services that are provided to the customers.

The single defining characteristic of the participants in a vertical market is competition within a well-defined segment.

Horizontal market
Horizontal market

A horizontal market is a market which meets a given need of a wide variety of industries, rather than a specific one....
 participants often attempt to meet enough of the different needs of vertical markets to gain a presence in the vertical market. Their similar products/services tend to be less of a fit but also less expensive than specialized, vertical participant solutions.

Vertical market software
Vertical market software

Vertical market software is aimed at addressing the needs of any given business within a discernible vertical market . While horizontal market software can be useful to a wide array of industries , vertical market software is developed for and customized to a specific industry's needs....
 is software aimed at addressing the needs of any given business within a discernible vertical market. An example could be software that manages services in hotels - amenities solutions.

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
Semiconductor

A semiconductor is a material that has electrical conductivity between those of a Electrical conductor and an electrical insulation; it can vary over that wide range either permanently or dynamically....
 manufacturers. It is also known as a niche market
Niche market

A niche market is a focused targetable portion of a market.By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers....
.

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
Word processing

Word processing is the creation of documents using a word processor. It can also refer to advanced shorthand techniques, sometimes used in specialized contexts with a specially modified typewriter....
 software. 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 horizontal markets (aerospace, manufacturing, banking, etc) but nevertheless be labelled "niche" if the database technology is technically obsolete and no longer mainstream.

Examples


Some common examples of vertical markets:

  • Automotive
  • Banking
  • Consumer
    Consumer

    Consumer is a broad label that refers to any individuals or household that use Good generated within the economic system. The concept of a consumer is used in different contexts, so that the usage and significance of the term may vary....
  • Education
    Education

    File:Inukshuk Monterrey 1.jpgEducation can be seen as a product or a process and considered in a broad sense or a technical sense. According to philosophy of education George F....
  • Energy
    Energy

    In physics, energy is a scalar physical quantity that describes the amount of Work_ that can be performed by a force. Energy is an attribute of objects and systems that is subject to a conservation law....
    • Oil
      Oil

      An oil is a chemical substance that is in a viscosity liquid state at room temperature or slightly warmer, and is both hydrophobic and lipophilic ....
       and Gas
      Gas

      In physics, a gas is a state of matter, consisting of a collection of particles without a definite shape or volume that are in more or less random motion....
  • Fast-Moving Consumer Goods (FMCG)
  • Financial
    FINANCIAL

    FINANCIAL is the weekly English language-language newspaper with offices in Tbilisi, Georgia and Kiev, Ukraine. Published by Intelligence Group LLC, FINANCIAL is focused on opinion leaders and top business decision-makers; It's about world?s largest companies, investing, careers, and small business....
     (Finance
    Finance

    The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds, and other organizations have become important....
    )
  • Food
    Food

    Food is any substance, usually composed of carbohydrates, fats, proteins and water, that can be Eating or Drinking by an animal or human for nutrition or pleasure....
     and beverage
  • Government
    Government

    Government is the body within any organization that has the authority to make and the power to enforce laws, regulations, or rules. Typically, the government refers to a civil government -- local, provincial, or national -- but commercial, academic, religious, or other formal organizations are also administered by governing bodies....
  • Healthcare
  • Insurance
    Insurance

    Insurance, in law and economics, is a form of risk management primarily used to Hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium, and can be thought of as a guaranteed small loss to prevent a large, possibly devastating los...
  • Manufacturing
    Manufacturing

    Manufacturing is the use of machine, tool and labor to make things for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to Industry production, in which raw material are transformed into finished good on a large scale....
  • Media
    Mass media

    Mass media is a term used to denote a section of the media specifically envisioned and designed to reach a mainstream such as the population of a nation state....
  • Online
  • Real estate
    Real estate

    Real estate is a law term that encompasses land along with anything permanently affixed to the land, such as buildings, specifically property that is fixed in location.
  • Religion
    Religion

    A religion is an organized approach to human spirituality which usually encompasses a set of myth, symbols, beliefs and practices, often with a supernatural or transcendence quality, that give meaning to the practitioner's experiences of life through reference to a higher power or truth....
  • Retail
  • Technology
    Technology

    Technology is a broad concept that deals with an animal species' usage and knowledge of tools and crafts, and how it affects an animal species' ability to control and adapt to its Natural environment....
  • Telecommunications
  • Transportation (Travel
    Travel

    Travel is the change in Location of people on a trip through the means of transport from one location to another. Travel is most commonly for recreation , for business trip or for commuting; but may be for numerous other reasons, such as migration, fleeing war, etc....
    )


See also


  • Horizontal market
    Horizontal market

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

    In microeconomics and management, the term vertical integration describes a style of management control. Vertically integrated companies are united through a hierarchy with a common owner....
  • Vertical monopoly