What does the term "vertical" mean in business?

A vertical in business, also known as a vertical market, caters to a specific set of consumers and their unique needs. E-commerce is increasingly serving vertical markets due to its low overhead and global reach. There are various vertical markets, such as organic groceries, cannabis-related products, heavy manufacturing, aerospace technology, insurance, and microchips. While it may seem counterintuitive, targeting a specific market allows a company to better serve consumers. This approach also fosters collaboration among companies that would typically be competitors, as seen in the partnership between Apple and Samsung.