Definition
Serviceable Available Market is the part of TAM you can sell to given language, geography, regulation, and what the product does today. It is smaller than TAM on purpose. An honest SAM keeps the pitch from treating the whole industry as your customer.
In the room
How the word shows up in a real conversation.
TAM is every GST-registered business. The product is English-only and sells through CA partners in four states. SAM is GST businesses in those states that already work with a CA — not “all of India.”
Formula
SAM = TAM filtered by who you can reach and serve today
Common mistake
Setting SAM equal to TAM and calling the cut “conservative.” If nothing was filtered, you skipped the step.
India note
State, language, and who actually pays (owner vs CA vs enterprise IT) shrink SAM fast in India. Name those filters.
See also
Total Addressable Market (TAM)
Total revenue opportunity available for a product or service in a market.
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Serviceable Obtainable Market (SOM)
The share of SAM you can realistically win in a defined period, given capacity.
Read definition →
Beachhead market
The first narrow customer you can win completely before you expand.
Read definition →
Value Proposition
Clear statement of the unique value a product or service provides to customers.
Read definition →
From the store
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