PROJECT 20Intermediate
TAM / SAM / SOM for a New Service
Business scenario
Orion Telecom considers launching a home-internet bundle in three regions and needs a market sizing for the investment committee.
Problem statement
Build a top-down and a bottom-up TAM/SAM/SOM estimate with transparent assumptions and ranges.
Learning objectives
- Distinguish TAM, SAM and SOM
- Build top-down and bottom-up estimates
- Triangulate and present ranges
Instructions
Use fictional inputs provided in your workbook template (households per region, broadband penetration, price points, competitor shares). Every number must trace to an assumption cell with a source note.
Tasks
- Top-down TAM → SAM → SOM.
- Bottom-up SOM from sales capacity and conversion.
- Reconcile the two.
- Sensitivity of SOM to penetration and price.
- Investment committee slide.
Deliverables
- Workbook
- One slide
Evaluation rubric
| Criterion | Weight | Excellent | Proficient | Developing | Insufficient |
|---|---|---|---|---|---|
| Definitions | 15% | TAM/SAM/SOM correctly distinguished. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Assumptions & traceability | 25% | All inputs explicit and sourced. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Triangulation | 20% | Methods reconciled thoughtfully. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Sensitivity | 15% | Ranges shown. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |
| Communication | 25% | Clear, honest slide. | Correct and complete with minor gaps in rigour or presentation. | Partly correct; important steps missing, unvalidated or unclear. | Missing, incorrect, or not supported by the data. |