Vertical and horizontal market

Okay kiddo, let me explain the difference between vertical and horizontal markets in a way that you can understand.

Imagine you have a toy store. There are different types of toys you sell, such as action figures, board games, and puzzles. Now, if you decide to only sell action figures, then you are focusing on a vertical market. This means that you are specializing in one type of product and catering to a specific audience that is interested in that product.

On the other hand, if you decide to sell all types of toys like action figures, board games, and puzzles, then you are focusing on a horizontal market. This means that you are catering to a broader audience by offering different products that appeal to a wide range of interests.

Think of it like this - if your toy store only sells action figures, it's like saying you're only going to eat one type of food, like pizza, every day. But if your toy store sells different types of toys, it's like having a buffet where you can choose from different foods, like pizza, pasta, and salad.

So, vertical markets focus on one specific product or service, while horizontal markets offer a range of products or services that target a more diverse audience. Got it?