SAE Magazine

ds the application of Lean t to entrepreneurship and otivation behind this: “The t startups fail. Most new ssful. Most new ventures tential (Ries 2011).” Lean terative prototyping to test op a product that custom- tartup Machine 2012).” al blueprint of implement- starting a new business. ved: prove current existing ate ideas for new products he opportunity s possible , you can using any on metho- that help with your help you s. An ex- nsteering ne 2011). STEP TWO Comparable to traditional market research, in step two you will identify the total address- able market (TAM), the served available mar- ket (SAM), your share of the market (SOM), and segment your share of the market. For the TAM, you will need to find out how many people would want or would need your product and how large that market would be in your currency if they all bought your product. For the SAM, you will need to answer how many people could actually use your product, how many people would have the money to buy your product and how large this market would be in your currency if they all bought your pro- duct. For the SOM, you will need to estimate your share of the market. This is also referred to as identifying your target market. It is impor- tant to answer whom you are going to sell your product to in year 1, 2 and 3, how many customers you will have and how large your market share will be if they all bought your product. The tar- get market can further besegmentedbyiden- tifying groups that are most likely to buy your product, for example by geographic, demo- graphic, psychogra- phic, and behavioral factors as well as by channel. ➤ INDEX Total Addressable Market, Served Available Market, and your share of the market. Photo:AndreasOszkiel

SAE Magazine

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