Software Solutions Developed With
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Business Verticals

Vertical market

A vertical market is a market in which vendors offer goods and services specific to an industry, trade, profession, or other group of customers with specialized needs. It is distinguished from a horizontal market, in which vendors offer a broad range of goods and services to a large group of customers with wide range of needs, such as businesses as a whole, men, women, households, or, in the broadest horizontal market, everyone.

The activities of participants within any given vertical market are typically similar in that they aim at solving the same or similar problems. These markets are typically competitive, due to the overlapping focuses of the products and services that are provided to the customers.

The single defining characteristic of the participants in a vertical market is competition within a well-defined segment.

Horizontal market participants often attempt to meet enough of the different needs of vertical markets to gain a presence in the vertical market. Their similar products/services tend to be less of a fit but also less expensive than specialized, vertical participant solutions.

Vertical market software is software aimed at addressing the needs of any given business within a discernible vertical market. An example could be software that manages services in hotels - amenities solutions.

Comparison with horizontal markets

A vertical market meets the needs of a particular industry: for example, a piece of equipment used only by semiconductor manufacturers. A vertical market can be subdivided into narrower niche markets. For example, the government vertical has niches like candidates seeking office, and the pet market has niches like dog training for hearing-impaired owners.

A horizontal market meets a given need of a wide variety of industries, rather than a specific one: for example, word processing software or machine-to-machine technologies. On occasion a horizontal market can be highly specialized at the same time, for instance consider the market for converting mainframe databases developed with the tools of a particular company. The market for such a database conversion service might involve many vertical markets (aerospace, manufacturing, banking, etc.) but nevertheless be labelled "niche" if the database technology is technically obsolete and no longer mainstream.

What Are 'Verticals' in Business ?

The term "verticals" in business refers to a vertical market. Basically, a vertical market is one where businesses and marketers cater to the needs of a specific group of people within an industry. This concept is in contrast to a horizontal market, where the focus is diverted to a large amount of people regardless of industry.

Vertical Markets Defined

Vertical markets are those that focus on a specific niche and can be marketed to in a similar manner. The entire business can be part of the vertical market, or just an individual department. For example, a business that sells computer software for a specific industry, such as medical, would fall under a vertical market. Also, a department within a company, such as the mortgage department at a bank, would be considered a vertical market, while all the combined departments at the bank could be considered a horizontal market.

Horizontal Markets Defined

Horizontal markets are those that focus on a broad range of customers and products that spread across industries. One difference between marketing to vertical markets versus horizontal ones is that with horizontal markets, you may need to change your marketing tactics for different industries. For example, if your company sells office supplies, large companies may be more interested in quantity, and smaller companies may be more interested in quality and cost effectiveness. Therefore, you'll need to cater your marketing tactics when selling to each of these markets.

Advantages of Vertical Markets

Many customers prefer vertical markets because that means they will receive products and services that are specifically designed to cater to their needs. Marketing businesses prefer vertical markets because they can create one advertising campaign that can be used universally. Businesses prefer vertical markets because they can specialize in a particular area and really excel at it. The biggest benefits to specialization is there's less competition to deal with and markets are usually willing to bear higher prices than had the products not been specialized.

Disadvantages of Vertical Markets

The primary disadvantage in vertical markets is there's a smaller population that will be interested in your products. With a horizontal market, the sky's the limit on how many products and services you can sell. However, with a vertical market, you're limited to what your niche market is willing to bear. Another disadvantage is that vertical markets tend to have additional risks. This is mainly due to the fact that vertical markets aren't as diversified; if the niche market starts plummeting, the business will experience greater losses.

Leonsoft Verticals are :
    • Education
    • Insurance
    • Transportation (Travel)
    • Telecommunications
    • Government
    • Manufacturing
    • Financial (Finance)
    • Healthcare
    • Real Estate
    • Religion

  • Quality Service

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