market-analysis-patterns

# Market Analysis Patterns

Frameworks for sizing markets, analyzing competition, and understanding industry dynamics.

## TAM SAM SOM Framework

Market sizing from total opportunity to achievable share.

### Definitions

```
┌─────────────────────────────────────────────────────────┐
│                         TAM                              │
│        Total Addressable Market                         │
│     (Everyone who could possibly buy)                   │
│  ┌───────────────────────────────────────────────────┐  │
│  │                      SAM                           │  │
│  │       Serviceable Addressable Market              │  │
│  │    (Segment you can actually reach)               │  │
│  │  ┌─────────────────────────────────────────────┐  │  │
│  │  │                   SOM                        │  │  │
│  │  │     Serviceable Obtainable Market           │  │  │
│  │  │   (Realistic share you can capture)         │  │  │
│  │  └─────────────────────────────────────────────┘  │  │
│  └───────────────────────────────────────────────────┘  │
└─────────────────────────────────────────────────────────┘
```

| Metric | Definition | Example |
|--------|------------|---------|
| **TAM** | Total market demand globally | All project management software: $10B |
| **SAM** | Your target segment | Enterprise PM software in North America: $3B |
| **SOM** | What you can realistically capture | First 3 years with current resources: $50M |

### Calculation Methods

**Top-Down Approach:**
```
TAM = (# of potential customers) × (annual value per customer)
SAM = TAM × (% addressable by your solution)
SOM = SAM × (realistic market share %)
```

**Bottom-Up Approach:**
```
SOM = (# of customers you can acquire) × (average deal size)
SAM = SOM / (your expected market share %)
TAM = SAM / (segment % of total market)
```

### Example Analysis

```markdown
## Market Sizing: AI Code Review Tool

### TAM (Total Addressable Market)
- Global developers: 28 million
- % using code rev