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Sagar Motwani

Stealth • 10d

To enter a market, understanding three key metrics is most important in any business field: 1) TAM (Total Addressable Market): The total demand for a product or service without limitations. Example: If 10 million people worldwide might buy $100 headphones, TAM is $1 billion. 2) SAM (Serviceable Available Market): The portion of TAM your product can target, considering geographic and demographic factors. Example: If your target is 3 million headphone users in specific areas, SAM is $300 million. 3) SOM (Serviceable Obtainable Market): The portion of SAM you can realistically capture, considering competition and capacity. Example: If you can serve 50,000 customers, SOM is $5 million. These metrics guide business strategy and growth potential analysis.Above are the only for example purpose if applied in proper estimated price and in proper market it will be very grateful to understand the potential of any business industry.

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How to figure out TAM,SAM ,SOM?

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