There’s been something bugging me about a buzzword I’ve been hearing for years. People refer to “verticals” all the time. What they actually mean is “industries,” such as travel, auctions, clothing, whatever. You might think that I’m just mad people are using an economic term to sound smart when there’s a perfectly good familiar word to use. Oh, if only that were all.
The problem is that they’re using the word wrong! In Economics, they taught us that vertical integration is the practice of buying up companies that are further upstream or downstream in the product process than you are. That could be an oil refinery buying up gas stations, or a clothing store getting into manufacturing their own lines. Horizontal integration is the practice of buying up companies that serve different segments of the same market you’re already in. Examples include AOL buying TimeWarner as another media company, or Honda deciding that they need to make an SUV too. If you’re talking about marketing web services to the travel industry, you’re only concerned about people selling to actual travelers. You don’t care about selling to Boeing because they make the planes or GM because they make the rental cars! Verticals is the wrong word! It’s horizontals!
Of course, people who use the term “verticals” can’t even tell you what a “horizontal” is. They’re stupid and they deserve to be punished. Or as Anton Le Vey said, "It's too bad that stupidity isn't painful."