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Market Sizing (TAM, SAM, SOM)

StrategyStrategy and alignment

Reference model

Market Sizing FrameworkA canvas of 9 boxes laid out on a grid of 3 columns and 3 rows: Total Addressable Market (TAM), Serviceable Available Market (SAM), Serviceable Obtainable Market (SOM), Market Segmentation, Competitive Landscape, Market Trends, Growth Projections, Customer Needs, Regulatory Factors.Total Addressable Market(TAM)The total revenue opportunityavailable.Serviceable AvailableMarket (SAM)The segment of the TAM targetedby your products.Serviceable ObtainableMarket (SOM)The portion of SAM that you canrealistically capture.Market SegmentationBreak down the market intosegments.Competitive LandscapeUnderstand competitors in themarket.Market TrendsIdentify trends affecting marketsize.Growth ProjectionsForecast future market growth.Customer NeedsAssess customer needs andpreferences.Regulatory FactorsConsider regulations impactingthe market.

Visualizing the market size helps in strategic planning and resource allocation.

About this model

Market sizing is a framework used to quantify the potential market for a product or service, helping businesses understand their growth opportunities.

Originator not stated.

How to read it

  • Start with TAM to understand the overall market size.
  • Narrow down to SAM for the target market segment.
  • Finally, estimate SOM to gauge realistic market capture.

What this does

Estimates the total market potential (TAM), the segment of the market targeted (SAM), and the share of the market that can be realistically captured (SOM).

When to use it

Use it when assessing market opportunities for new products or services to inform strategic decisions.

Not when: Do not use it when there is insufficient data to support market estimates or when the market is highly volatile.

What happens next

Conduct a competitive analysis to understand positioning in the market.

Golden thread

Builds on ←

  • Market research
  • Competitive analysis

Feeds into →

  • Strategic business plan

Use this tool, free

Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.

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Drafted with AI and reviewed by Eccellere on 04/11/2026. Guidance, not advice: apply your own judgement.