October 2, 2025
When Growth Stalls, Focus Wins
How a Vertical Market Strategy Can Help Manufacturers Drive Growth, Profitability, and Simpler Operations
When manufacturers hit a plateau in revenue growth, the instinct is often to expand into new markets or product lines. But according to Chris Baichoo, WMEP’s CEO and Executive Director, that kind of unfocused expansion can backfire. “Many companies start with a niche, but as they grow, they spread themselves thin—chasing opportunities that don’t align with their core strengths,” Chris explains. “That’s when complexity creeps in, costs rise, and margins shrink.” Companies that adopt a vertical approach often find untapped opportunities, better ROI on resources, and faster, more sustainable growth.
The Power of Vertical Focus
A vertical marketing strategy can be a powerful solution. Rather than trying to serve everyone, vertical marketing targets a few well-defined industries and organizes the business around serving them deeply and effectively. “When you focus by industry, you gain sharper insights into what customers truly need,” says Chris. “That drives better decisions around what products to develop, what services to offer, and how to reach your audience. You sell more effectively because you understand their world.” This clarity doesn’t just help with marketing and sales—it also informs product strategy, operational priorities, and even talent development.
How to Make the Shift
Making the transition starts with self-awareness. Chris recommends companies begin by understanding their core strengths and strategic position. “Are you a product leader, a customer experience company, or operationally excellent?” he asks. “Once you’re clear on that, map out your revenue by industry. Which ones align best with your strategy and offer the highest return on effort?” Evaluating industries by growth potential, competitive intensity, and fit with your product lifecycle helps determine which markets to prioritize—and which to deemphasize. The goal isn’t to abandon customers, but to invest wisely.
Organizing Around the Strategy
Shifting to a vertical structure means aligning key roles—sales, marketing, engineering, product development—around industry segments. That may involve reassessing team assignments or even developing new talent. Before restructuring, Chris cautions that financial reporting and customer mapping must support the new approach. “You need to be able to measure profitability by industry,” he says. “If you can’t see the financial impact of your strategy, it’s hard to manage it.”
Developing Winning Strategies by Vertical
Once the structure is in place, the next step is to craft a tailored strategy for each vertical. This includes doing environmental scans, talking to industry thought leaders, and gathering voice-of-customer input. “You want to understand industry-specific trends, unmet needs, and how customers measure value,” Chris says. “That informs everything—from product development and R&D allocation to marketing tactics and sales channels.” Strategic planning should happen at least twice a year, Chris advises, to keep up with evolving conditions and to allow for course corrections. “Agility is key. This isn’t a one-and-done initiative.”
Lessons Learned from the Field
Chris acknowledges that implementing a vertical strategy isn’t easy. It requires leadership buy-in, time, and a commitment to change. But the rewards can be substantial. “Communicate the ‘why’ to your team often and openly,” he advises. “Celebrate wins to build morale. Be willing to stop doing things that don’t align with the strategy.” He also encourages leaders to map the industry value chain. “You’ll uncover underserved opportunities—whether it’s services, system-level solutions, or new revenue streams you hadn’t considered.”
Why Focus Wins
Moving to a vertical marketing strategy can simplify decision-making, clarify priorities, and accelerate profitable growth. It’s not about doing more—it’s about doing the right things, for the right markets, with greater impact. “Focus creates momentum,” Chris emphasizes. “And the results—growth, profitability, and stronger customer alignment—speak for themselves.”
WMEP is a nonprofit consulting organization with a simple mission: help Wisconsin manufacturers succeed. Our advisors bring real-world industry experience and deliver practical solutions across three key focus areas: Growth, Operations, and People. Contact us to explore how we can help clarify your strategy, sharpen your value proposition, and align leadership for long-term success.