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One thing that's very important to calculate is your market size and forecasted growth. For that we can use the TAM-SAM-SOM model. That's where you define your model in three different market sizes. The TAM is the total addressable market, that is if you could reach every single consumer on the planet to purchase your product. The TAM is usually those huge market numbers where you come in and say that the market for this product is about $3 billion worldwide. That is true, if you could reach every single consumer throughout the world. SAM is the serviceable available market, and that's the market that is reachable within the reach of your organization. For example, if your market is North America and your market is small start-ups, then your TAM becomes substantially smaller but also more realistic. You go from saying 'there is a market of $3 billion' to a serviceable available market (SAM) of $300 million. SOM is the serviceable obtainable market, and that is based on a practical view of your organization. Once again, if for example, you build a market model and you say in year one 'I'm going to have three salespersons', those three salespersons are not going to go and grab a $3 billion market, and they're not going to grab the $300 million market that you initially estimated. They might be able to bring you $3 million or $2 million, so the SOM is the practical approach of saying 'with the resources I have, I am able to reach that market'.

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Situation analysis: MedLung and the TAM-SAM-SOM model

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