Horizontal market

A horizontal market is a market that will be sold on the same products, ie goods and services to companies in various industries.

Example: office supplies needed by companies of virtually all industries.

The opposite is a vertical market.

Horizontal to vertical markets are open markets and have a greater number of participants. They are characterized by low barriers to entry, since the traded product or standardized but is in common use.

Typically, there are manufacturers that produce large quantities or offer large amounts of service, a network of dealers or agencies (if wholesalers and retailers ), and a variety of end users.

But even if a single manufacturer, perhaps supplying its own distribution network, a variety of customers with a standardized product range, it is a horizontal market.

The relationships on horizontal markets can be described as transaction relationships. That is, the customer and the customer must be received no long-term partnership to transform their business relationship. For both sides of the partners is relatively easy to replace, actually after each transaction (after every transaction ).

Lasting relationships have but also in horizontal markets its advantages, because the business will be easier to plan, there are fewer administrative costs ( collective invoices, etc.), it must not always be thinking about reliability, business conditions, logistical issues and other peripheral issues. Frequently Seller bind loyal customers with discounts corresponding se. One speaks in this context of regular customers or suppliers house.