Hi mxgale!
You asked about the difference between horizontal and vertical
markets, giving examples of both.
A loose definition of a vertical market is one that deals with a
particular industry, meeting its needs. A horizontal market is more
general - it appeals to, or deals with a much wider range of
businesses, uses, etc. This is the main difference between the two.
Searching Google brought up the following results:
According to Investorwords.com, 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’.
http://www.investorwords.com/cgi-bin/getword.cgi?2340
The same site classes a vertical market as:
‘A market which meets the needs of a particular industry: for example,
a piece of equipment used only by semiconductor manufacturers’.
http://www.investorwords.com/cgi-bin/getword.cgi?5242
SearcheBusiness.com classes a vertical market as
‘vertical market is a particular industry or group of enterprises in
which similar products or services are developed and marketed using
similar methods (and to whom goods and services can be sold).’
Using software as an example to differentiate between horizontal and
vertical markets, the site points out that:
‘Vertical market software is software aimed at a particular vertical
market and can be contrasted with horizontal market software (such as
word processors and spreadsheet programs) that can be used in a
cross-section of industries.’
http://searchebusiness.techtarget.com/sDefinition/0,,sid19_gci213286,00.html
The site includes ‘broad examples’ of vertical markets, such as
insurance, real estate, banking, heavy manufacturing, retail,
transportation, hospitals, and government.
The very definitions of vertical and horizontal markets leads me to
draw the conclusion that there are no similarities in the markets
themselves, beyond the fact that they are both market structures.
InvestorWords doesn’t see any similarities – in fact its definition
include the words ‘opposite of’:
‘opposite of horizontal market.’
http://www.investorwords.com/cgi-bin/getword.cgi?5242
Main Highway, a provider of Internet solutions, says:
‘Horizontal markets have participants who come from diverse sectors
but share common networking goals.’
The same piece cites ‘good examples’ of horizontal markets, such as
‘Chambers of Commerce, Industrial Associations and Federations or
regional business associations’.
Vertical markets, according to Main Highway, are when ‘members [of
communities] come from different parts of the supply chain hence the
term "vertical community". Opportunities emerge for intra-community
commerce as members forge working alliances, sharing knowledge and
commercial practice.’
‘Vertical Communities are often referred to as Communities of
Practice.’
http://www.mainhighway.com/solutions/markets/horiz_vert.htm
According to 10east:
‘Microsoft targets a horizontal market, a market with vast, generic
appeal to the masses. A commodity market.’
http://www.10east.com/?asptypes
Search terms:
Horizontal market
Vertical market
Horizontal and vertical market similarities
Hope this helps!
cobrien |
