Vertical market

As a vertical market is called in economics a market that offered on the goods and services from business activities in a value chain of a particular industry.

It may be " all solutions " offered, that is a bundle of goods and services from a business segment. This bundle is specifically combined by the provider to the customer, which usually requires the involvement of the customer and eliminates middlemen. The provider, in turn, will, however, buy components of its solution in general.

As an example, a provider of telecommunications solutions apply, which supplies a call center. The customer receives telephones, a telephone system, by routing the wires, switches a connection to the public telephone network, the customer receives a software that displays all the important data about the caller, he is trained in the operation, the staff are trained to call center agents, and finally the telephone connections via the provider are handled. Maybe enters the provider equal to as lessor for the devices.

The business partners enter into a designed for longer duration bond, because both need to learn a lot about their partner in order to ensure a successful collaboration. This brings predictability, but also dependency. Therefore, it is necessary to first establish mutual trust, so to get a feel for the risks linked to the partnership with them.

Vertical Markets have evolved extent increased only towards the end of the 20th century. Along with technological development and globalization are developing in increasing speed of new business models, their successful implementation is only possible through the use of highly specialized devices, systems and methods. Since the associated knowledge is only a short time, namely in the introductory phase, requires in part, it is uneconomical for it to employ their own experts. Instead, a company shall be responsible for providing the new solution introduces (Consulting ) and possibly also operates ( outsourcing).