What is SOM
Posted: Sun Jan 19, 2025 5:51 am
The last but one of the most important metrics is SOM (Share of Market). This is the market share that your company plans to capture. You set it yourself based on your research. It is important to note that your armenia whatsapp number data business plan usually describes how exactly you plan to achieve this figure and how realistic it is. Let's say we plan to achieve a market share of 20%.
It turns out that SOM = TAM × 20% × 50,000 rubles = 500 million rubles.
This is the number you should always rely on. This is your goal for a specific period of time. However, it is impossible to calculate it without knowing all the others. You should go from the largest to the smallest in order to localize and highlight the market volume that you can actually capture. Moreover, this volume can change from year to year. Next year, you will need to at least take into account that you have already covered some part.
Determining the market size is an important element of business planning. It helps you understand whether or not to start a business, as well as assess growth opportunities and develop a development strategy. Each of the PAM, TAM, SAM and SOM metrics provides a specific perspective. Understanding and using them together allows you to gain a more complete picture of your position in the market and form the basis for a successful business.
It turns out that SOM = TAM × 20% × 50,000 rubles = 500 million rubles.
This is the number you should always rely on. This is your goal for a specific period of time. However, it is impossible to calculate it without knowing all the others. You should go from the largest to the smallest in order to localize and highlight the market volume that you can actually capture. Moreover, this volume can change from year to year. Next year, you will need to at least take into account that you have already covered some part.
Determining the market size is an important element of business planning. It helps you understand whether or not to start a business, as well as assess growth opportunities and develop a development strategy. Each of the PAM, TAM, SAM and SOM metrics provides a specific perspective. Understanding and using them together allows you to gain a more complete picture of your position in the market and form the basis for a successful business.