Exercise

TAM: bottom up market sizing

Now you've decided to think about the TAM from the bottom up. Bottom-up TAM requires:

  1. Start with granular data
  2. 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.

Instructions

50 XP

Possible answers