Serviceable Obtainable Market (SOM)
What is a serviceable obtainable market (SOM)?
A serviceable obtainable market (SOM) is the portion of the serviceable addressable market (SAM) that is capturable. Product, external research, market reach, market size, historical performance and competition affect SOM. To calculate SOM, companies can multiply their market share from the last year by their SAM from the current year.
Why are serviceable obtainable markets (SOMs) important to healthcare?
Serviceable obtainable markets are important because they indicate which market sections healthcare organizations can capture. Knowing the available markets is critical because most healthcare organizations cannot achieve 100% of their market share. It also helps healthcare organizations determine risk and specify their targets, thus informing financial forecasts and sales and marketing strategies. Additionally, SOM indicates potential performance relative to competitors.