What is a Horizontal Market?
A horizontal market is a type of market that covers several industries at once. In comparison, the vertical market supplies only one industry. The horizontal market offers many benefits to businesses, and many make horizontal segmentation a priority at the design stage. First of all, companies that can offer goods in a horizontal market usually do better during periods of economic turmoil and change, when industries may refuse some goods or services.
An example of a horizontal industry is the software market. It is necessary for a very wide range of customers, from government officials to huge enterprises. Everyone uses software of one type or another today, and there are products that are used across dozens of industries. For example, an online translator may be required in all business areas, from architecture to clothing sales. On the other hand, the program for managing restaurant reservations is created exclusively for one industry, HoReCa.
Another feature of the horizontal concept is higher competition since there are also more potential consumers in these markets. Accordingly, prices are always more competitive, as all suppliers understand that buyers have a choice.