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Serviceable addressable market (SAM; also served available market) is the part of the
total addressable market Total addressable market (TAM), also called total available market, is a term that is typically used to reference the revenue opportunity available for a product or service. TAM helps prioritize business opportunities by serving as a quick metri ...
(TAM) that can actually be reached.


Overview

The serviceable available market or served addressable market is more clearly defined as that market opportunity that exists within a firm's existing core competencies and/or past performance. The biggest consideration when calculating SAM is that a firm most likely can only service markets that are core or directly adjacent to its current customer base. As examples: * Consider a firm that plans to become a niche solution provider in the Healthcare market. It is unlikely that the firm will quickly be able to capture market share in
manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to ...
without significant investments in market expansion. * In
telecommunication Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that ...
s where a
service provider A service provider (SP) is an organization that provides services, such as consulting, legal, real estate, communications, storage, and processing services, to other organizations. Although a service provider can be a sub-unit of the organization t ...
is expanding into a new market that is dominated by an incumbent that has existing infrastructure investments in place, the incumbent raises the barriers to entry in that market and therefore
market analysis A market analysis studies the attractiveness and the dynamics of a special market within a special industry. It is part of the industry analysis and thus in turn of the global environmental analysis. Through all of these analyses the strengths, w ...
will not count that market as serviceable.


See also

*
Total addressable market Total addressable market (TAM), also called total available market, is a term that is typically used to reference the revenue opportunity available for a product or service. TAM helps prioritize business opportunities by serving as a quick metri ...
*
Market segmentation In marketing, market segmentation is the process of dividing a broad consumer or business market, normally consisting of existing and potential customers, into sub-groups of consumers (known as ''segments'') based on some type of shared charact ...
*
Target market A target market, also known as serviceable obtainable market (SOM), is a group of customers within a business's serviceable available market at which a business aims its marketing efforts and resources. A target market is a subset of the total m ...


References

Business terms Market segmentation {{Business-term-stub