Vertical analysis is the systematic study of a specific industry vertical's needs, dynamics, buying patterns, regulatory environment, competitive landscape, and unit economics. It's used to inform vertical-specific go-to-market strategy at companies that focus on (or are evaluating focus on) particular industry verticals (healthcare, financial services, manufacturing, education). The discipline is especially important at vertical SaaS companies and at horizontal SaaS companies evaluating vertical expansion or vertical-specific product investments. Vertical analysis is industry analysis applied to a specific industry slice rather than the whole economy.
The dimensions to analyze:
Vertical-specific needs: