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A vertical market is a market in which
A vertical market is a market in which vendor
In a supply chain, a vendor, supplier, provider or a seller, is an enterprise that contributes goods or services. Generally, a supply chain vendor manufactures inventory/stock items and sells them to the next link in the chain. Today, these terms ...
s offer goods
In economics, goods are items that satisfy human wants
and provide utility, for example, to a consumer making a purchase of a satisfying product. A common distinction is made between goods which are transferable, and services, which are not ...
and services ''specific'' to an industry, trade
Trade involves the transfer of goods and services from one person or entity to another, often in exchange for money. Economists refer to a system or network that allows trade as a market.
An early form of trade, barter, saw the direct exch ...
, profession
A profession is a field of Work (human activity), work that has been successfully ''professionalized''. It can be defined as a disciplined group of individuals, ''Professional, professionals'', who adhere to ethical standards and who hold the ...
, or other group of customer
In sales, commerce, and economics, a customer (sometimes known as a client, buyer, or purchaser) is the recipient of a good, service, product or an idea - obtained from a seller, vendor, or supplier via a financial transaction or exchange f ...
s with specialized needs. A horizontal market is a market in which a product or service meets a need of a wide range of buyers across different sectors of an economy
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with t ...
.
Types
There are three types of vertical market which encompass successive market stages of production and distribution: corporate, administered and contractual. #Corporate vertical markets combine market stages under single ownership. #Administered vertical markets are coordinated by one company due its size and power. #Contractual vertical markets are created by independent companies that combine market stages through legal agreements.See also
*Vertical integration
In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the supply ...
*Vertical market software Vertical market software is aimed at addressing the needs of any given business within a discernible vertical market (specific industry or market). While horizontal market software can be useful to a wide array of industries (such as word processors ...
*Vertical monopoly
In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the supply ...
*Supply and demand
In microeconomics, supply and demand is an economic model of price determination in a market. It postulates that, holding all else equal, in a competitive market, the unit price for a particular good, or other traded item such as labo ...
* Product-market fit
References
{{Econ-stub Market (economics)