TAM / SAM / SOM
Stage 1 · Market understanding
TAM / SAM / SOM
TAM, SAM and SOM separate the total addressable market from the serviceable market you can reach with your offer and channels, and the obtainable share you can realistically win. It turns a large headline market into a credible target.
Questions it answers
How it works
The steps teams follow in our programs and projects.
Step 1
Total market
Size the full market for the problem you solve.
Step 2
Serviceable market
Remove segments, regions or channels you cannot serve.
Step 3
Obtainable share
Estimate a realistic share given competitors and resources.
Step 4
Test the plan
Compare the result with revenue targets and investment needs.
What you get
The output
Three nested numbers with the assumptions behind each, ready for a business plan or investor discussion.
From our client work
How clients apply it
Paraphrased and anonymized from recent programs and engagements.
Application 1
Teams use it alongside Value Maps when preparing growth plans and new market entries.
Application 2
A private-equity-backed business used the same logic to show its growth could scale beyond its home region.
Linked tools
The output of one tool becomes the input to the next.
Where it's used
Academy program
Strategic Marketing
See dates →Expertise
Strategic Marketing & Growth
Explore →Expertise
Innovation, Portfolio & Customer Insight
Explore →Problem it solves
Targets without a path
Read more →Problem it solves
R&D starts before the market case
Read more →Situation
After a spin-off, carve-out or PE acquisition
How we help →Situation
Deciding which innovation projects to fund
How we help →Questions about TAM / SAM / SOM
Why not just use the total market?
Because most plans fail on the serviceable and obtainable numbers, not the headline market size.
Is SOM a forecast?
It is a realistic target, built from share assumptions you can explain and test.
Other tools in stage 1: Market Map · TAM / SAM / SOM · PEST analysis · Five Forces · Value Chain · Risk Analysis and VUCA
Want to use TAM / SAM / SOM on a live plan?
Book a 20–30 minute sounding board conversation with a senior consultant who has sat in your seat. No cost, no commitment.
