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--- market-potential-analysis [2024/10/21 20:49] – Omnia Sami
+++ market-potential-analysis [2024/10/23 10:37] (current) – [References] Ihab Ahmed
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 ====== Market Potential Analysis ======
-Understanding your market potential is really important for your business strategy.
+Understanding your market potential is really important for your startup strategy.
 Let’s break down three key ideas:
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   * Serviceable Obtainable Market (SOM)
+=====  =====
+{{ :tam.svg?350 | Addressable, Available, and Obtainable Market}}
 ===== TAM =====
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 It's the realistic number of customers they expect to serve right away!
+===== Why it is Important? =====
+It's important for a few reasons:
+  * **Using Resources Wisely** Knowing the SOM helps startups spend money and time smartly. For example, a new restaurant can focus on attracting local customers instead of trying to reach people too far away.
+  * **Getting Investment** Investors want to see the market size before funding a startup. A clear SOM shows the business idea can work, helping attract investors.
+=====  =====
+  * **Planning for Success** These numbers help startups set realistic sales goals and create effective marketing plans. Regularly checking them allows startups to adapt if the market changes.
+  * **Identifying Opportunities** Understanding these metrics helps startups find gaps in the market, allowing them to tailor their products or services to meet specific customer needs.
+  * **Measuring Growth** Tracking TAM, SAM, and SOM can help startups monitor their growth over time, showing progress and informing future strategies.
+===== Practical Application =====
+To use TAM, SAM, and SOM you should:
+  * **Identify the Business Idea** Clearly describe the product or service you want to offer.
+  * **Research TAM** Use industry reports and market data to figure out the total size of the market.
+  * **Determine SAM** Look at the specific group of customers your business can realistically reach.
+  * **Establish SOM** Estimate the market share you can realistically capture in a certain time period.
+===== Key Considerations for Startups =====
+To get the most out of understanding your market potential, keep these points in mind:
+  * Regularly ask for feedback from potential customers to improve what you offer and meet their needs better.
+  * Look at what your competitors are doing to understand what customers like and what makes your startup stand out.
+  * Stay aware of trends in your industry so you can see how customer needs might change and adjust your plans accordingly.
+=====  =====
+  * Build relationships with other businesses, mentors, or experts in your field to get helpful advice and find ways to work together.
+  * Be open to changing your strategies based on feedback from the market and how well you're doing.
+  * Think about your startup's long-term goals and growth, not just short-term sales.
+  * Use tools and technology that can help you analyze market data more easily and effectively.
+===== References =====
+  - Malhotra, N. K. (2010). Marketing research: An applied orientation. Pearson Education.
+  - Babbie, E. (2013). The basics of social research. Cengage Learning.
+  - Wikipedia. (n.d.). [[https://en.wikipedia.org/wiki/Market_research|Market research]] [[https://en.wikipedia.org/wiki/Total_addressable_market|Total Addressable Market]].