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Vertical Market
(redirected from vertical markets)

   Also found in: Encyclopedia, Wikipedia 0.01 sec.
Vertical Market
The market for a product that only appeals to a single industry. For example, an airplane manufacturer is likely to sell airplanes predominantly or exclusively to airlines. A vertical market can be very profitable when there are only a few sellers in it; however, even a small amount of competition can drive down profit margins significantly. See also: Horizontal market.


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We tend to think about the need to verticalize an outsourcing offering as following an 80/20 rule--about 80% of an outsourcing offering is applicable to all vertical markets and about 20% needs to be modified for the specific needs of an industry.
The move to focus on vertical markets follows similar announcements by other ERP vendors, including JD Edwards and SAP, who, faced with increasing competition in the ERP market, are trying to differentiate their offerings in an attempt to boost revenues.
 
 
 
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