TAM: bottom up market sizing
Now you've decided to think about the TAM from the bottom up. Bottom-up TAM requires:
- Start with granular data
- Logically extrapolate upwards
You collected the following data:
- A big public education company's revenue: $321M annually
- Business education is 5% of the total company revenue ($321M)
- The company's market share of the entire online education market is 50%
What is the bottom-up TAM for the online business education market in the US?
You can use the console on the right as a calculator. The following operators will work: +
, -
, *
, and /
. Pressing enter will show you the results of your calculation.
This exercise is part of the course
Data-Driven Decision Making for Business
Hands-on interactive exercise
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