market-sizing-analysis
Calculate TAM/SAM/SOM for market opportunities using top-down, bottom-up, and value theory methodologies. Use this skill when sizing markets, estimating addressable revenue, validating market opportunity for a new venture, or building investor-ready market analysis for a startup pitch or business plan.
Security Assessment
About market-sizing-analysis
The market-sizing-analysis skill provides a structured approach to evaluating the potential of market opportunities by calculating Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM). It addresses a critical problem for startups and businesses seeking to understand the scope and viability of their market, offering clear methodologies to estimate revenue potential, validate market existence, and support strategic planning. By leveraging this skill, users can produce credible, data-driven market assessments that inform investment decisions, business plans, and fundraising strategies.
This skill incorporates three complementary methodologies for market sizing. The top-down approach uses existing industry research to estimate market potential, ideal for established, mature markets. The bottom-up approach builds market estimates from granular customer segment data, providing precise, defensible projections especially suitable for niche markets. Value theory focuses on calculating market opportunity based on the economic value of solving a specific problem, enabling analysis of disruptive or new market categories. Each methodology includes detailed processes and formulas to calculate TAM, SAM, and SOM, ensuring rigorous, repeatable analysis.
Market-sizing-analysis is particularly useful for startup founders, business analysts, and investors aiming to evaluate new ventures, prioritize target segments, or prepare investor-ready materials. It can be applied to SaaS, fintech, e-commerce, and other sectors where market assessment is critical. Typical use cases include sizing a market before launching a product, estimating addressable revenue for business models, validating market assumptions for funding pitches, and producing strategic insights for long-term business planning.
FAQ
When should I use the top-down methodology?
Use top-down analysis when there is established market research available. It's ideal for mature, well-defined markets to quickly validate market size and growth potential.
Is this skill suitable for niche or emerging markets?
Yes, the bottom-up methodology is most suitable for niche or emerging markets as it builds estimates from specific customer segment data, providing granular and defensible projections.
Can I use this skill for disruptive innovation or creating new market categories?
Yes, the value theory approach is designed for analyzing new or disruptive markets by estimating willingness to pay and the value created by solving a specific problem.
What are the main limitations of these methodologies?
Top-down may overestimate market size in new categories and is less granular. Bottom-up requires detailed customer research and is time-intensive. Value theory relies on assumptions about willingness to pay, which may vary.
What inputs are required to use this skill effectively?
Inputs vary by methodology but generally include market research data, customer segment information, revenue metrics, and assumptions about market capture or willingness to pay.
Install market-sizing-analysis
Quick Setup:
- Copy the skill folder to
.claude/skills/ - Claude will automatically detect and use the skill
Repository
wshobson/agents