Determine the portion of TAM you can realistically serve with current capabilities
ms2Category: market-sizingCalculate the portion of TAM you can realistically serve
SAM
$336,000,000
SAM % of TAM
33.6%
Applying 60% geographic reach, 70% product-market fit, and 80% channel reach to your $1,000,000,000 TAM yields a $336,000,000 SAM (33.6% of TAM).
Serviceable Addressable Market (SAM) represents the subset of TAM that a business can realistically serve based on geographic reach, product capabilities, and distribution channel access. SAM accounts for practical business constraints that prevent serving the entire addressable market.
SAM calculations typically incorporate three key constraint factors: geographic coverage limitations, product-market fit boundaries, and sales channel accessibility. The intersection of these constraints defines the realistic market a company can pursue with current resources and capabilities.
SAM
$336,000,000
SAM % of TAM
33.6%
Applying 60% geographic reach, 70% product-market fit, and 80% channel reach to your $1,000,000,000 TAM yields a $336,000,000 SAM (33.6% of TAM).
Serviceable Addressable Market (SAM) represents the subset of TAM that a business can realistically serve based on geographic reach, product capabilities, and distribution channel access. SAM accounts for practical business constraints that prevent serving the entire addressable market.
SAM calculations typically incorporate three key constraint factors: geographic coverage limitations, product-market fit boundaries, and sales channel accessibility. The intersection of these constraints defines the realistic market a company can pursue with current resources and capabilities.