Question

Explain the difference between a horizontal market and a vertical market.

Answer 1

Horizontal market refers to a market where the goods and services are used by the customer regardless of the industry they are in.

Vertical market refers to a market where the goods and services are offered that is specific to an industry and fulfill the needs of one specific industry or single niche. Example insurance, transportation, etc.

The difference between horizontal market and vertical market are: -

• Horizontal market include many industry whereas vertical market consider one particular industry.
• In horizontal market, group of companies serve broader market whereas in vertical market, group of companies do not serve broader market.
• Horizontal market focus on meeting the needs of many inductry whereas vertical market focus on meeting the needs of one specific industry.