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Forecasted Industry Growth Rate = 15% Companies Market Share Post Types 2019 Sales 40% Square $400 M 40% Round $400 M 20% Square $200 M 100% N/A $1 B A B C Totals 60% Post Innovations (a new entrant in the post market) wants to capture 20% of the Square Post Market by 2022. Post has developed a very cost effective post material that does not rot when exposed to water or termites. ● . Assumptions (cont) The SAM % / TAM % ratio is expected to remain constant over the period 2020 to 2022. Post Inno. Prod. Ramp Capability = 400% Year over Year (YoY) This means they can quadruple production year over year. Average Selling Price (ASP) is $10.00/unit in 2020 through 2022. Forecasted Growth Rate is 15% YoY from 2020 to 2022. A) What is the Total Available Market (TAM) in $? B) What is the Serviceable Market (SAM) in $? TAM SAM 2019 1 B 600 M 2020 1.15 B 690 M 2021 1.32 B 790 M 2022 1.52 B 910 M Forecasted Industry Growth Rate = 15% Companies Market Share Post Types 2019 Sales 40% Square $400 M 40% Round $400 M 20% Square $200 M 100% N/A $1 B A B C Totals 60% Post Innovations (a new entrant in the post market) wants to capture 20% of the Square Post Market by 2022. Post has developed a very cost effective post material that does not rot when exposed to water or termites. ● . Assumptions (cont) The SAM % / TAM % ratio is expected to remain constant over the period 2020 to 2022. Post Inno. Prod. Ramp Capability = 400% Year over Year (YoY) This means they can quadruple production year over year. Average Selling Price (ASP) is $10.00/unit in 2020 through 2022. Forecasted Growth Rate is 15% YoY from 2020 to 2022. A) What is the Total Available Market (TAM) in $? B) What is the Serviceable Market (SAM) in $? TAM SAM 2019 1 B 600 M 2020 1.15 B 690 M 2021 1.32 B 790 M 2022 1.52 B 910 M
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ANSWER To answer the questions well use the given information and apply the assumptions provided A Total Available Market TAM in dollars The TAM repre... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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