How To

Difference Between Horizontal and Vertical Development

Skill Development

In the competitive world of business, you need to have an efficient team to help you achieve your business’ success. You can enhance the skills of your employees with the help of vertical and horizontal development.

In this article, we will discuss the difference between horizontal and vertical development. So, you can turn your team to capable supervisors.   

Horizontal development and vertical development defined 

Horizontal development mainly concentrates on expertise. Your employees need to acquire the basic skills to perform their responsibilities in the best way. On the other hand, vertical development pertains to how we interact with various authority levels. With vertical development, your employees can develop personal skills in revolving working environments. 

Vertical Integration 

With vertical integration, you can enhance the operations of your organization to the next stage within its niche. For example, you decide to make profits with your bread instead of paying various suppliers of bread. 

Vertical Skills Development 

Vertical skills development is offering your team training to handle their increasing responsibilities. For example, you can promote an employee into a higher position. It can offer your employees an opportunity to learn more skills that can boost their personal and professional development. 

Horizontal Integration 

This integration is an alliance of 2 businesses that may change the competitive scene. For example, two small businesses join together to be a weightier competitor. Meanwhile, one drawback of horizontal integration is the risk of creating an illegal monopoly. 

Horizontal Skills Development 

This type of skills development includes training your employees to handle different tasks or difficulty levels. For example, you can reassign an employee to another department in your company. 

Specialized Skills Development 

Specialized skills development is different from both horizontal and vertical development. Thus, the training for an employee results to a highly developed specialty. 

Advantages of Horizontal Development

Horizontal development can provide your company with the following benefits.

Reduce production costs 

With horizontal integration, you can lower production costs. With that, you can save more of your budget and allocate it to other aspects of your business. 

Bigger market share 

Another advantage of horizontal development is that it can increase your market power or market share. If two companies joined forces, you could also combine technology, product base, and services in the market. 

Bigger customer base 

As two companies merge, they can have a bigger customer base. So, it can help to increase revenue and achieve a successful stage with your business. 

Improves your revenue 

With horizontal integration, you can boost your customer base. In return, you can also improve the revenue of your business. 

Autonomy and freedom 

Horizontal development can also provide autonomy and freedom. With the application of cross-function teams, you can improve the collaboration in your company. There are also new opportunities for innovation that can keep your organization ahead of the competition. 

Advantages of Vertical Development 

Like horizontal development, vertical development can also offer benefits to your organization. 


Vertical development can provide your organization with a unique and practical approach. 

You can have a system that can meet the specific needs of your company. In this way, you can operate your company more effectively and profitably. 

Innovative technology 

By integrating vertical development in your company, you can access more innovative technology that can help your business grow. 

Your employees can also learn how to use these technologies to enhance their work performance. 

Comprehensive solution 

Vertical development can offer your business comprehensive solution to enhance the skills of your employees. You can have the right tools to meet the satisfaction of your customers. With this, it can be easier for your team to perform their responsibilities in the workplace. 

Why is horizontal growth important? 

If you want to succeed in your specific niche, opting for horizontal development is a good decision. With this strategy, you can maximize the happiness, productivity, and longevity of your employees. As a result, you can make your company more profitable. 

Employee development 

Horizontal development is essential for employee development. With this, you can motivate your employees to improve their performance in their duties and responsibilities. It will make them feel that you recognize their improvement and hard work. 

Retain your top employees 

Horizontal growth is also helpful to retain your top employees. It helps you to win the trust of your employees and make them loyal to your organization. On the other hand, it can also increase the confidence of your employees. Thus, they will feel that you value and appreciate their efforts, achievements, and abilities. 

Good investment 

Horizontal development can be a good investment for your business’ growth. The strategy can help your employees to be motivated and inspired to make the best of their tasks. They can learn new knowledge and acquire skills to empower them to contribute to achieving your organization’s goals.

Great for long-term success 

Horizontal development can be beneficial to help your organization achieve long-term success. Aside from enhancing the skills of your employees, you can also increase your revenue. With the enhanced teamwork within your company, you can gain more potential clients for your business. 

It allows you to increase the recognition of your brand. So, your target audience will learn to trust your company. Additionally, it will also boost your employees’ confidence since they are part of your growing and successful organization. 

Reduce the cost of your business operations 

If you want a practical solution for your business, horizontal development is a good option. It can help to lower the cost of your business operations. 

With this, you can save more of your budget while gaining more profits for your organization. 


To sum it up, vertical and horizontal development is beneficial for your organization. It can help for the collaboration of your workforce. If you want to level up your company’s success, you can opt for horizontal development or vertical development. 

Meanwhile, keep in mind that these strategies are associated with great responsibilities. They also have some drawbacks. With that, you need to manage horizontal or vertical development efficiently. 

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