An Overview of Horizontal Market
The word horizontal market is used to describe any market that attends to the needs of a wide range of clients. Generally, businesses operating in a horizontal market will usually sell goods that are highly requested. The horizontal market consists of various target audiences and segments. Businesses that operate in this space are not restricted to a particular group of people. This article aims at helping you to successfully compete in a horizontal market with our tools and tactics.
As a business owner, you are eagerly looking forward to the next stage of your business. You have finally brought your new business idea to reality and decided to leverage the horizontal market. But as you begin to come further into the market, you realize that the horizontal space is filled with a lot of competition. Now, you have to modify and make improvements on how you can grow your business. You need to look into how you can successfully compete in a horizontal market.
How does a business function in a horizontal market?
Businesses that operate in the horizontal market do not restrict or focus their products to a specific niche. They are able to cast their net to a large segment of the ocean. As a result of this, these businesses often have more members on their team of employees. They work hand in hand to develop the business, expose the business to the general public and get more income. Before we go into how you can successfully compete in a horizontal market, let us first take a look at how the horizontal market differs from the vertical market.
Difference between Horizontal market and vertical market
These two types of markets are extremely different from each other. How does the horizontal market differ from the vertical market? It’s as easy as they are the exact opposite of themselves. Horizontal market explains a market that is found in a widespread industry. This means that all businesses that are in a position of selling to multiple industries are categorized under the horizontal market. Any business that functions in a horizontal market will be having its sellers and buyers from different sectors across the economy.
On the other hand, a vertical market explains a market with a specific industry. It simply means that any business that has a particular customer it sells to, is classified as a vertical market. A vertical market targets the need of a specific set of customers in a specific niche. All businesses that are in a position of selling to a designated market are all classified under the vertical market. Horizontal market has its audience and customers scattered far and wide. A vertical market is a more specific industry, accommodating only a targeted niche.
Example scenario of how horizontal market and vertical market works
Walmart may be grouped as a business under the horizontal market. It attends to the needs of almost all market demographics. Walmart also works hand in hand with different categories of retailers. Now, we are going to compare Walmart with Whole Foods. Whole Foods specializes in grocery products made from organic materials. In this case, Whole Food deals majorly with end users or consumers and wholesalers who prefer buying groceries made from organic materials. This means Whole Foods has its market operating under the organic products verticals.
Tips and tricks of how to successfully compete in a horizontal market
You stand a chance to enjoy all of these benefits and more when your business operates in a horizontal market. Here is show to successfully compete in a horizontal market
There is High Demand in the market
As a business owner operating in a horizontal market, there is a high demand for the goods and services you produce. The demand is high because it is requested from different sectors of the economy. You have a lot of clients who want to buy what you are selling. Your major asset will be to know how to persuade them to buy from you out of all the various sellers that they have.
Wide Customer Base
Another advantage you have as a business operating in the horizontal market is that you have a wide range of customers that you can sell your products and services to. The industry is wide and you are serving a major fraction of it. There will always be possibilities you can leverage on in the horizontal space. All you need to do is find an innovative way to properly target the various industries.
Availability of opportunities for innovation
The horizontal market happens to be wide enough to accommodate a wide range of businesses. There are many people who are available to purchase from you in a horizontal market. There are abundant opportunities to come up with innovative ideas to market your products and services to your customers. As a result of a wide range of customers, you might have to change the way you market your products and services to your customers.
The way you pitch to a segment of audience may not be applicable to the others. You should make sure that your team involved in sales and marketing, understand the tactics. This way, you all can function hand in hand to sell to several groups of customers. Collaborate And get an increase in revenue for your business.
Embrace teamwork
In a horizontal market, there is high risk of competition and as a business you do not want to be caught off guard. You can collaborate with other business owners in your industry. You can also leverage an agreement to offer your goods as a combination offer. If you know a business owner who sells products that will be of advantage to your audience, it will be a great idea to work together with them. This way you will be able to develop fresh and profitable relationships in your industry. There will also be an opportunity to get more customers through referrals. Since your customers know that you care about them and they are important to you.