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Vertical market software is aimed at addressing the needs of any given business within a discernible vertical market (specific industry or market). While horizontal market software can be useful to a wide array of industries (such as word processors or spreadsheet programs), vertical market software is developed for and customized to a specific industry's needs.
Horizontal and vertical market. The medicine industry is an example of a 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. A horizontal market is a market in which a product or service meets the needs of a wide ...
In microeconomics, management and international political economy, vertical integration, also referred to as vertical consolidation, is an arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products ...
Horizontal market software. In computer software, horizontal market software is a type of application software that is useful in a wide range of industries. This is the opposite of vertical market software, which has a scope of usefulness limited to few industries. Horizontal market software is also known as " productivity software ."
Marketing. Horizontal integration is the process of a company increasing production of goods or services at the same level of the value chain, in the same industry. A company may do this via internal expansion or through mergers and acquisitions. [ 1][ 2][ 3] The process can lead to monopoly if a company captures the vast majority of the market ...
Internet marketing. Search engine optimization ( SEO) is the process of improving the quality and quantity of website traffic to a website or a web page from search engines. [ 1][ 2] SEO targets unpaid traffic (known as "natural" or "organic" results) rather than direct traffic or paid traffic. Unpaid traffic may originate from different kinds ...
Consequently vertical market software, such as software development tools, engineering tools, marketing tools or software that helps users in a decision making process can profit from social components. Such vertical social software differentiates strongly in its user-base from traditional social software such as Yammer.
The company's business strategy is to acquire software companies, and then hold them for the long term. It has acquired over 500 businesses since being founded. It focuses on vertical market software companies (i.e. those that create software for a particular industry or market, as opposed to creating software usable for a wide variety of markets).