Horizontal vs. Vertical
Let's explore the differences between horizontal and vertical businesses.
We'll cover the following...
Basic split in tech strategy
The basic split in tech strategy is horizontal vs. vertical businesses.
If you work on infrastructure, you might be familiar with “horizontal vs. vertical scaling”. This is different. Here we are talking with respect to your customers.
Vertical business
If your business is designed from the ground up to serve a single industry or customer profile, you are a vertical business. Vertical businesses typically grow by offering more and more capabilities to serve the customers they have, despite these features existing as standalone offerings elsewhere. The goal is to be a “one stop shop”. User experience can be mindblowing when it is vertically integrated- but frustrating when limitations arise.
Horizontal business
If your business can be used by customers across any industry, you are a horizontal ...