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Serviceable addressable market (SAM; also served available market) is the part of the total addressable market (TAM) that can actually be reached.
Serviceable addressable market (SAM; also served available market) is the part of the total addressable market (TAM) that can actually be reached.
Overview
The serviceable available market or served addressable market is more clearly defined as that market opportunity that exists within a firm's existing core competencies and/or past performance. The biggest consideration when calculating SAM is that a firm most likely can only service markets that arecore
Core or cores may refer to:
Science and technology
* Core (anatomy), everything except the appendages
* Core (laboratory), a highly specialized shared research resource
* Core (manufacturing), used in casting and molding
* Core (optical fiber ...
or directly adjacent to its current customer base. As examples:
* Consider a firm that plans to become a niche solution provider in the Healthcare market. It is unlikely that the firm will quickly be able to capture market share in manufacturing
Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of the
secondary sector of the economy. The term may refer ...
without significant investments in market expansion.
* In telecommunication
Telecommunication, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of ...
s where a service provider
A service provider (SP) is an organization that provides services, such as consulting, legal, real estate, communications, storage, and processing services, to other organizations. Although a service provider can be a sub-unit of the organization t ...
is expanding into a new market that is dominated by an incumbent that has existing infrastructure investments in place, the incumbent raises the barriers to entry in that market and therefore market analysis
A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and thus in turn of the global environmental analysis. Through all of these analyses the strengths, ...
will not count that market as serviceable.
See also
* Total addressable market *Market segmentation
In marketing, market segmentation or customer segmentation is the process of dividing a consumer or business market into meaningful sub-groups of current or potential customers (or consumers) known as ''segments''. Its purpose is to identify pr ...
* Target market
A target market, also known as serviceable obtainable market (SOM), is a group of customers within a business's serviceable available market at which a business aims its marketing efforts and resources. A target market is a subset of the total m ...
References
Business terms Market segmentation {{Business-term-stub