SOM

Serviceable Obtainable Market (SOM) is the segment of the Serviceable Addressable Market (SAM) that a company can realistically attain, considering factors such as competition, market presence, and resource constraints. SOM provides a practical estimate of the market share a company can capture within a specific timeframe. This metric is used to set realistic sales targets and market share goals.

SOM is vital for sales and business planning, as it helps companies set achievable goals and measure progress. By understanding SOM, businesses can develop more accurate sales forecasts, allocate resources effectively, and devise strategies to capture market share. This focus ensures that efforts are concentrated on the most promising opportunities, leading to better performance and growth outcomes.

The concept of SOM developed as businesses needed to translate high-level market opportunities into actionable sales targets. As competition intensified and markets became more dynamic, companies sought more realistic metrics to guide their growth strategies. SOM has become an integral part of market analysis and strategic planning, providing a grounded view of market potential.

The future of SOM analysis will leverage real-time data and advanced analytics to provide more accurate and dynamic market assessments. AI-driven tools will help businesses identify and respond to competitive threats and opportunities more quickly. As markets become increasingly digital and data-driven, SOM analysis will become more sophisticated, enabling companies to set and achieve more precise market share goals.