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FED KIIT • 1y
Should a startup idea always focus on capturing the entire TAM?
LostBird :) • 1y
Nope, TAM is Total Addressable Market it's not practical to capture entire TAM. In early stage of the Startup. He should focus on SOM and SAM bcz capturing TAM will require huge resources. Which can be obtained by first controlling SOM and SAM.
Thanks, learnt something new.
Tech guy with a busi... • 11m
And when you’re building something, SAM is Service Addressable Market, the portion of TAM that a company should realistically target, whereas SOM is Service Obtainable Market, the portion of SAM which is market that company realistically capture. So cut to short, SOM is subset of SAM, and SAM is subset of TAM. Hope this helps you
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