AI Business Plan Generator

SAM / TAM / SOM

These three metrics provide a hierarchical view of the market size and business potential.

Total Available Market (TAM): This represents the total market demand for a product or service. It's the maximum amount of revenue a business could achieve if it achieved 100% market share. TAM helps to understand the full potential of the market on a global or regional scale.

Serviceable Available Market (SAM): SAM is the segment of the TAM targeted by your products and services which is within your geographical reach. It is the part of the market that can actually be served either due to the nature of the product or due to geographical, regulatory, or other constraints.

Serviceable Obtainable Market (SOM): SOM is the portion of the SAM that you can capture. It takes into account the current competition and market realities. SOM is realistically achievable in the short-to-medium term and is a practical goal for a business to aim for.

Learning Materials

SAM / TAM / SOM

For PrometAI, let's assume:

TAM: The global market for financial analysis software is valued at $10 billion, representing the TAM. This is the total potential market for financial software solutions worldwide.

SAM: Given PrometAI's current operational capabilities and market reach, we can service a market worth $2 billion within the fintech sector, which becomes our SAM.

SOM: Considering our current market share, competition, and marketing strategies, we aim to capture $500 million of the SAM in the next five years, which is our SOM.

This analysis helps PrometAI in strategic planning, focusing on market penetration strategies, and setting realistic sales and growth targets.