ECON 138 1.28.2011 - ECON 138 Sequoia website wri ting a business plan etc(GO LOOK AT IT Elements of sustainable companies market size share of

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
ECON 138 1/28/2011 Sequoia website: writing a business plan, etc (GO LOOK AT IT) Elements of sustainable companies - market size - share of market Quantitative market assessment Market size Total revenue generated in broad segment Total addressable market (TAM) – top down Total revenue if you got every customer in your narrow segment Cite overall market research, then claim an arbitrary percentage Serve Available Market (SAM) – bottom up Build up the total addressable market by using the main variables of the revenue model EG: expected price x number of potential customers Share of Market (SOM) Market share you have in your SAM = your sales/total SAM sales Am I gaining market share, or just growing with market? EXAMPLE: Product: InstaGram TAM: total cellphone market SAM: cellphones with cameras SOM: could be going up or going down. Even if sales go up.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/09/2011 for the course ECON 138 taught by Professor Staff during the Fall '08 term at University of California, Santa Cruz.

Page1 / 2

ECON 138 1.28.2011 - ECON 138 Sequoia website wri ting a business plan etc(GO LOOK AT IT Elements of sustainable companies market size share of

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online