Horizontal market
A horizontal market is a market in which the same products , i.e. goods and services , are sold to companies in different industries .
Example: Office supplies are actually required by companies in all industries.
The opposite is a vertical market .
Horizontal markets are more open to vertical markets and have a larger number of participants. They are characterized by low entry barriers, since the traded product is standardized or at least in common use.
Typically there are manufacturers who produce large quantities or offer large quantities of the service, a network of dealers or agencies (possibly wholesalers and retailers ), and a large number of end customers.
But even if a single manufacturer, perhaps via its own distribution network , supplies a large number of customers with a standardized range of products, this is a horizontal market.
The relationships on horizontal markets can be described as transactional relationships. This means that customers and buyers do not have to enter into a permanent partnership in order to develop their business relationship. For both sides, the partner is relatively easy to exchange, actually after every transaction (after every sales process).
But lasting relationships also have their advantages in horizontal markets, because the business can be planned more easily, there are fewer administrative costs (collective invoices, etc.), and there is no need to keep thinking about reliability, terms and conditions, logistical issues and other peripheral issues. Salespeople often retain loyal customers with appropriate discounts. In this context one speaks of regular customers or house suppliers.