Horizontal Vs. Vertical Business Model
In the world of business, success lives or dies on the strength of the business model. There are many strategies for business models. With a variety of contingent factors intrinsic to running a business, business models can differ based upon what aspects a business operation focuses on.
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Background
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Regardless of the particulars, all business models have the same structure and goal. A business model must define a goal or mission statement that focuses the business and propels it forward. It must define the operational structure and processes that will allow it to achieve its goal. It also examines sources of revenues to ensure a steady flow of capital that will enable the business to maintain operations over a period of years.
Horizontal Model
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Horizontal models focus on many different markets or niches. Often, entrepreneurs spread themselves over a variety of markets that, by themselves, make very little money. However, when combined, the separate components generate a reliable income. The website eBay is a prime example of a horizontal business model. It deals with a variety of products and include millions of customers with divergent interests and motives.
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Vertical Model
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Vertical business models have a very specific focus and delve deeply into whatever topic or product the company is involved in. They hire and consult with experts on their product in an attempt to become the leading source for customers who seek out their product. Website blogs are examples of vertical business models. Successful blogs focus on a single topic and build a loyal following based on the blogs' status as an expert on the topic.
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References
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