Refers to the entire marketplace that crosses all industry boundaries. See horizontal market software. Contrast with vertical market.
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Horizontal market
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A market diversified so that the products created are able to meet the needs of more than one industry.
Investopedia Says:
The profitability for companies producing goods in a horizontal market is determined more by internal rather than external factors, as their products are commonly used. An example of a horizontal market is the demand and production of plastic pellets.
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A horizontal market is a market which meets a given need of a wide variety of industries, rather than a specific one.
Examples
In technology, horizontal markets consist of customers that share a common need that exists in many or all (vertical) industries. For example, customers that need to purchase computer security services or software exist in such varied industries as finance, healthcare, government, etc. Together, these customers constitute the security horizontal market. Other examples of horizontal markets include computer storage, accounting, desktop graphics, computer-aided design, sales force automation, and human resources. Often specialized distribution channels emerge to serve these unique horizontal markets.
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