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A serviceable obtainable market (SOM) is the portion of the serviceable available market (SAM) that you can realistically capture. Your current offerings, pricing, and competitors could impact your SOM.
Perhaps you create software for hospitals. Your total addressable market (TAM) could be every hospital in the world. However, you’re focusing on serving nonprofit hospitals in the United States that have fewer than 5,000 employees—those limitations will determine your SAM.
Right now, you’re only able to operate in California, and there’s already a strong competitor in the market. These factors will determine your SOM and your short-term revenue potential.
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