Definition: The Serviceable Obtainable Market (SOM) represents the realistic market share your business can capture in the near term, considering your current capabilities, competitive landscape, and operational constraints.
Think of SOM as your immediate battlefield in a larger market war. While your long-term strategy might aim for broader territory, SOM represents the ground you can realistically conquer now.
Consider a food delivery app startup. Its TAM might include everyone who orders food delivery globally. Its SAM could narrow to urban professionals in North America who order lunch during workdays. However, its SOM might only encompass Manhattan professionals in specific industries, given the app's current marketing budget, delivery network, and strong competition from established players. As the company builds reputation and resources, its SOM can expand—but realistic projections should focus on this attainable segment first.
Investors and strategic planners value SOM calculations because they provide a realistic foundation for revenue projections and resource allocation. Unlike the often aspirational TAM figures, a well-calculated SOM reflects what's actually achievable in your current business phase.
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