Marketspeak for a startup
If you look at Sequoia’s business plan standard and encounter this:
- WTH is TAM-SAM-SOM ?
Do not panic. It is extremely simple:
Total Available Market - the absolute maximum that can be reached by the product
Served Available Market - the fraction of the total available market that is accessed by the product now
Share Of Market - the fraction of the served available market that the product controls
(see more —
http://windowmanager.blogspot.com/2005/05/wth-is-tam-sam-som.html)
For example, for Android software:
TAM is Android-based phones (non-phone devices such as GPS receivers are not included),
SAM is Android-based phones that allow to install third party software (some may be locked by manufacturers or belong to corporations),
and SOM … Well, given there are NO Android phones on the market yet, and even the Android is still in preview/alpha, this is zero for everyone. Or 100%, whiever you like. Opposites match where the market does not exist yet.