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Total Addressable Market (TAM)

Total Addressable Market (TAM) refers to the total market demand for a product or service. It's a critical metric for product managers to estimate the revenue potential of their product in the market, guiding strategic planning and investment decisions.

Example

Uber’s expansion strategy was heavily influenced by its analysis of TAM for ride-sharing services. By identifying and entering high-TAM cities and countries, Uber was able to rapidly grow its user base and revenue.