Glossarytaught in CN2.02
Serviceable addressable market
Also called SAM, serviceable market.
The part of the total market a company can actually reach with its current products, channels and geography.
A firm present in four states that hold 40% of a market faces ₹25,200 crore. The headline number isn't its market.
Most market-sizing claims fail at this narrowing. A company with no distribution in half the country doesn't address that half, whatever the category size. Expanding distribution is a capital decision with its own economics.
Size what you can reach, then say what reaching more would cost.