Vertical Market

A vertical market is a market or niche market where the supplier or the retailer provides goods and services to a very specific kind of the customers. The goods and services of the supplier are not attracted by a large number of the customers. Moreover these goods provide advantage to specific kinds of clients not the wide array of clients.

Working of the Vertical Market

In order to understand the working of the vertical market lets have an example of a company that manufactures some kind of medical equipment that is utilized by a specific kind of the patients. For example this medical equipment is used only on the liver tissues. This means the liver surgeons and clinics dealing with liver problems are the clients for this kind of product. So the company can only sell this product to these specific customers not to the heart surgeon or other kinds of clinics or hospitals.

Importance of Vertical Market

Although vertical markets are lucrative but they have a high degree of risk associated with them. However in certain cases the risk is overcome by the attraction of monopolizing the market. Suppliers or manufacturers dealing in vertical market can easily become the market leader as there is minimal competition.


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