Post by account_disabled on Mar 6, 2024 3:42:26 GMT
Conducting an initial market study before starting any project is extremely important. Without going any further, according to a study by Hinge Research Institute, 43% of ventures do not achieve success due to errors made during the hypothesis of the business and market opportunities. Likewise, market studies significantly improve the decision-making process. In fact, companies that use them grow 27.9% more and obtain 8.9% more profitability. One of the most useful and used tools when starting a startup or business in order to estimate the opportunities that the market offers us is the Tam Sam Som technique. Do you want to know more about this tool? In this article, you can find all the information you need. cta text What is Tam Sam Som? Jean Paul Getty , founder of the Getty Oil company and one of the most important businessmen in the oil sector, once stated that, “to succeed in business , to reach the top, an individual must know everything that is possible to know about that business.” Hence, Tam Sam Som is one of the most used techniques, even by Silicon Valley startups, since it is a very practical formula that allows an initial estimate of the size of a specific market.
This technique will reveal the opportunities we have when marketing a new product or service. In addition, it allows us to find out what the market volume is around a sector, how strong the competition is or what the target audience is that we can reach, among other interesting data. In short, thanks to Tam Sam Som, it is possible to Europe Mobile Number List find out if the business is viable and, therefore, if it can gain a foothold in the market, or if, on the contrary, we should reject the product or service in question. There I am How does the TAM, SAM, SOM technique work? To understand how the Tam Sam Som tool works, you just have to decipher the meaning of its acronym. Each of them allows us to discover three different approaches, which will help us assess the market from three very interesting points of view: TAM (Total Addressable Market) or total market: the Tam is the total market or the size of our target market. That is, in this step, the objective is to estimate the volume of annual income that is generated in the market we want to enter.
This will give us a global idea of the possibilities that a business offers or the possibility of scaling it. SAM (Serviceable Available Market) or market that we can serve: the SAM is an indicator that aims to find out what part of the market we can cover with the resources and the current production model . This will allow us to size the capacity of our business and estimate the maximum volume of income that we can qualify for. SOM (Serviceable Obtainable Market) or market that we can obtain: finally, the SOM allows us to estimate what market volume we can obtain in the short or medium term. This allows us to estimate the volume of income that we could obtain during a certain time, usually a year. However, it is important to make a realistic estimate based on the data obtained in the previous phases. There I am How to calculate market size with TAM SAM SOM? The Tam Sam Som technique allows you to calculate the size of a market in two different ways: from the top down (Top-Down) or from the bottom up (Bottom-Up). Top-Down: decision making is based on more global variables that are adjusted little by little until more specific data is reached. For example, first the international market could be studied, then the national, regional, local, etc.