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I was applying to a content writer position the other day and one of their questions was “what is your vertical experience for this position?” Ummm, what? I’d never heard that term before and was stumped. So, as any budding writer does, I went to good ol’ Google and started the research process to find out what they were looking for. I decided to write an article on it because I know I’m not the only one who has/had no clue what this term means. And, that’s my goal to share what I learn!
When it comes to business, the term “vertical” can have a lot of different meanings. In general, though, it refers to a company or industry that specializes in a particular area or product. For example, a vertical market might be defined as healthcare, automotive, or retail.
Different businesses can operate within the same vertical, but they will typically specialize in different parts of that market. For instance, within the healthcare vertical, there might be companies that focus on hospitals, medical supplies, or insurance.
Why is understanding verticals important for businesses? Because it can help them better understand their target market and what kinds of products and services they should be offering. It’s also helpful for businesses to know which other companies are operating in the same vertical so they can form partnerships or keep an eye on the competition.
Having knowledge about different business verticals can give you an edge in today’s marketplace. So whether you’re just starting out in business or you’ve been in the game for a while, it’s worth taking some time to learn more about this concept.
1. The word “vertical” is often used in business to describe a company’s growth strategy:
The word “vertical” is used frequently in business to indicate a company’s preference for one specific line of growth. This strategy allows an organization to focus their strength in a singular area, and as they develop their expertise, they are able to build momentum and expand vertically within that sector. For instance, if a company begins by manufacturing products and then later diversifies into services, that is an example of vertical growth. Companies using a vertical growth strategy often enjoy greater success by concentrating on one aspect of the business and leveraging their reputation to make further investments in the same sector.
2. A vertical can be thought of as a market niche that a company focuses on:
A vertical refers to a market that a company specifically caters to in order to provide a focused approach in their products and services. It’s essentially narrowing down the target market by industry, geography, customer type or some other defining criteria. A business can specialize in one particular vertical which allows them to provide tailored solutions and services, or they may opt for operating within multiple verticals which can give the company greater flexibility, depending on their business goals. By having an understanding of what a vertical is and how it could benefit their organization, businesses have the ability to determine the best way to target poised markets with suitable offerings.
3. A company might focus on the vertical of selling eco-friendly products:
When it comes to business, vertical often refers to a company specializing in one particular niche or industry. A company that focuses on the vertical of selling eco-friendly products is an example of this focus. This means they specialize in providing environmentally friendly options for their customers. Purchasing and selling sustainable products can benefit both the environment and businesses, promoting conservation and stronger endeavors for the future. It’s always good news when companies prioritize sustainability over profits, working towards better and brighter outcomes for our planet.
4. A vertical can also refer to the way a company sells its products or services:
A vertical in business terms is the way that a company sells its products or services. It can often be thought of as a ‘vertical stack’ – meaning that the company controls the entire process from start to finish, such as developing, supplying and distributing their own products. However, depending on their industry, some businesses may choose a more horizontal approach which implies outsourcing individual parts of their operations to external suppliers. Either way, understanding the advantages of a vertical business model is key to establishing success in today’s competitive market.
5. A company might sell its products through brick-and-mortar stores, online, or through a combination of both:
When businesses are referred to as ‘vertical’, it means that there is a conscious effort to control, manage, and be involved in every aspect of their operations. For example, a company that employs a vertical strategy might seek to not only create and design the products they sell but also manufacture them themselves and supply them through their own distribution network. This is different from a more traditional business model which might enlist the help of external manufacturers, distributors, or retailers – such as selling products through brick-and-mortar stores, online marketplaces, or even both. Regardless of their strategy, it is important for businesses to understand all parts of their operations so that they can make informed decisions about how best to move forward.
6. “Vertical” can also describe the relationship between different parts of a company, such as between the sales and marketing departments:
It’s not just a physical descriptor: the term “vertical” is also commonly used in business to refer to the relationship between different parts of the same organization. For example, the sales and marketing teams at a company might share a vertical relationship because they both work to increase sales, albeit from different angles. In this context, understanding and leveraging vertical relationships between departments can be an effective way for businesses to align their efforts and maximize their impact.
There are many different ways to grow your business, but one method is to focus on a specific market niche. This market focus is often referred to as a “vertical.” A vertical can also refer to the way a company sells its products or services. For example, some companies sell their products through brick-and-mortar stores, online, or through a combination of both. Keep in mind that the word “vertical” can also describe the relationship between different parts of a company, such as between the sales and marketing departments. So when you’re next discussing growth strategy with your team, don’t forget to consider all aspects of vertical integration!
