service available market (SAM)
Service Available Market (SAM) represents the portion of the Total Addressable Market (TAM) that a company can realistically target and serve with its current business model and capabilities. SAM is a more practical and focused market size estimate than TAM.
SAM is most often used alongside TAM and SOM to tell a complete story:
Acronym | Stands For | Definition |
TAM | Total Addressable Market | The total market demand for a product or service. |
SAM | Serviceable Available Market | The portion of the TAM that your business can actually reach with its current business model, geography, and offerings (factoring in constraints like distribution). |
SOM | Serviceable Obtainable Market | The realistic portion of the SAM that your company can expect to capture, considering the existing competition and market realities (this is often your initial, achievable target market). |