In business, a vertical market, or a "vertical", is a specialized niche market that serves a narrow industry or customer base. A software company that develops mobile point-of-sale software specifically for restaurants would be operating within a vertical market. An app that serves as a social network for amateur photographers in New York would be another example.
Horizontal markets, unlike vertical markets, are generalized markets that sell their products to a wide range of customers. Technically speaking, all businesses operate both horizontally and vertically, though to varying degrees. The chief advantage of a horizontal market is that it offers a much larger user base than a vertical market. On the other hand, horizontal marketplaces are much more competitive and are extraordinarily difficult to penetrate.
As we will see, making use...