Horizontal Market

AAA

DEFINITION of 'Horizontal Market'

A market diversified so that the products created are able to meet the needs of more than one industry. A horizontal market is one in which the output good or service is widely used and in wide demand, thus the producers bear little risk in demand for their output, however will typically face a great amount of competition within the industry.

INVESTOPEDIA EXPLAINS 'Horizontal Market'

The profitability for companies producing goods in a horizontal market is determined more by internal, rather than external, factors, as their products are commonly used. An example of a horizontal market is the demand for pens across any and all industries. Pens are used in basically all industries, therefore success or failure for pen producers is determined by internal decisions and factors, rather than macro events.

RELATED TERMS
  1. Hot Money

    1. Money that flows regularly between financial markets as investors ...
  2. Vertical Market

    A group of companies that serve each other's specialized needs ...
  3. Downstream

    The oil and gas operations that take place after the production ...
  4. Upstream

    Operations stages in the oil and gas industry that involve exploration ...
  5. Marginal Rate of Technical Substitution

    The rate at which one factor has to be decreased in order to ...
  6. Absolute Advantage

    The ability of a country, individual, company or region to produce ...
Related Articles
  1. Hidden Costs Of Product Rebates
    Personal Finance

    Hidden Costs Of Product Rebates

  2. The Advantages Of Investing In Aggressive ...
    Investing Basics

    The Advantages Of Investing In Aggressive ...

  3. Getting To Know Business Models
    Entrepreneurship

    Getting To Know Business Models

  4. Lead The Charge With Product Development
    Professionals

    Lead The Charge With Product Development

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center