Distinguish total market potential from reachable and obtainable revenue for an entry case.
The move: shrink the number until it becomes useful. TAM: total demand TAM answers, "How big is the total category?" It is useful for strategic context, but it is rarely a launch target. A company with a narrow product, one language, and one channel cannot serve the entire category on day one. SAM: reachable demand SAM answers, "What part can our offer and channel actually serve?" This is where product fit, geography, language, regulation, distribution, and buyer type matter. SAM should exclude demand you cannot legally, operationally, or commercially reach. SOM: obtainable demand SOM answers, "What share can we win…
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