Industry segmentation is always horizontal-it is based upon the products an industry supplies and the customers to which they are supplied.The notion of vertical segmentation-segmenting an industry along its value chain is attractive in principle but impossible in practice.

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Vertical segmentation is possible in practice, as it involves segmenting an industry based on the different stages of the value chain, from raw materials to finished products. However, it may be complex and requires a thorough understanding of the industry's value chain and its players. Horizontal segmentation is based on the products and customers of an industry.

Industry Segmentation Is Always Horizontal-It Is Based Upon the Products