39) Taming TAM, SAM, SOM
Sharan and Sudeep delve into the topic of TAM, SAM, and SOM. These acronyms may sound like alphabet soup to some, but they have become common place especially after 2 season of Shark Tank India. They are essentially concepts for entrepreneurs and investors to understand when evaluating market potential and business growth opportunities.
TAM estimates the total market demand for a product or service in revenue terms, representing the maximum revenue a company could earn if it captured 100% of the market share. SAM, or Serviceable Available Market, is the portion of the TAM that a company can realistically target. SOM, or Serviceable Obtainable Market, is the portion of the SAM that a company can realistically capture.
However, the hosts highlight the myths surrounding these concepts and how they can mislead businesses. For example, focusing solely on TAM can lead to unrealistic expectations and poor resource allocation, while assuming SAM is always easy to identify can cause a business to overlook potential opportunities beyond their initial target market.
Through a thought-provoking discussion, the hosts examine the strengths and shortcomings of these measure when used in isolation and offer insights into how businesses can use these concepts to their advantage. Tune in, to gain a deeper understanding of these essential business concepts.
CREDITS
- Album Art & Design by ting.in of the Black & Yellow show
- Voiceovers by Nadir Kanthawala of Pops in a Pod
- Edited by Janhavi Pethkar
- Music from Zapsplat.com
FOLLOW US
Sharan - https://www.linkedin.com/in/sharavana-raghavan
Sudeep - https://www.linkedin.com/in/sudeepchawla/
