A vertical market is made up of companies and customers that are focused on a specific industry or segment within an industry. Providers to vertical markets focus on the specific needs of this niche customer group. In contrast, a horizontal market is significantly broader and can span multiple industries. Providers to horizontal markets tend to provide a “one size fits all” approach to the solutions or products they provide. Providers to a vertical market may provide solutions up and down the same value chain. Whereas providers to a horizontal market often tend to meet a certain aspect of the value chain, but do it across multiple industries.
Investopedia explains the vertical market this way: ” A vertical market is a market encompassing a group of companies and customers that are all interconnected around a specific niche.”
For example, manufacturing is seen as a horizontal market that could encompass industries like automotive, furniture, computers, etc. Whereas Horticulture is seen as a vertical market within the horizontal market of manufacturing.
Often times, a vertical is focused on acquiring new assets and remaining focused in the same value chain. For example, when a young plant grower in the Horticulture industry also sells finished plants to garden centers or chain stores. They are remaining within the Horticulture industry, but widening their skillset and customer base within that market.
Software can also be classified as vertical or horizontal based solutions. As companies look to software to help streamline and automate their businesses, they wrestle with whether they need a solution that is focused on their industry or whether a broader more horizontal solution will meet their needs.
The conglomerate magazine Forbes couldn’t agree more, in a recent article they stated:
“Now, more so than ever, we are seeing vertical-specific software solutions, which are built to serve a specialized “vertical” or industry as opposed to being a solution across industries.”
In today’s age, aren’t most people looking for solutions that are customized to meet their specific needs? Business needs are no exception. The need for vertical software solutions is becoming increasingly unavoidable. As technology continues to advance, we are now presented the opportunity to select a software solution that is tailored and designed specifically for your industry and craft.
Forbes later went on to say: “The time is now to obtain software that is purpose-built for you”
Now that you are aware of the differences between a vertical or horizontal market, Where do you find yourself?
If you are in a vertical market, the software solution that you use ought to also be vertical. Often times we settle for the horizontal solution that is presented to us because that is what is known and familiar. All too often the mistake is made that since multiple industries use XYZ software, that this speaks to its usefulness and effectiveness. While this may solution may be effective, it isn’t tailored or focused on you, so it won’t cover all of you needs. It will likely only effectively service an aspect of your operation.
The option to enjoy your own tailored solution is there for you. Take it!
With the correct vertical solution to your vertical market, you can integrate this automation and software into every aspect of your business. Increasing efficiency and productivity greatly. Streamlining through your day with ease like you have always wanted. This allows you to remain all in one place as opposed to working within multiple horizontal solutions, attempting to get them to speak to each other fluidly. Now you can remain in your vertical solution for the majority of your day!
One of the main benefits of a vertical solution is it’s holistic personality. Providers of these solutions have a better understanding of the needs of the industry they support. They are able to understand the full breadth of an industry, from trends and regulations, to terminology. Remaining focused on one industry allows for the solution to be dynamic, while continuing to evolve alongside the customer and industry. A vertical solution is able to be proactive to trends because they are solely focused on that industry.
The opportunity to operate within a software that is absolutely compatible with your needs and your industry is here.
Picas is a vertical software that offers a full solution to the needs of those that live in the horticulture and floriculture industries. We would love to explain the invaluable benefit of Picas and how it can serve your growing operation in ways no other software can!
Written By: John and Andrew Stallmer