Flip through any start-up’s pitch deck and you’re likely to find a few references to a large market size, often denoted as total addressable market, or TAM. Large, growing markets are catnip to businesses and investors. But a point not often highlighted in pitch decks is that large markets attract lots of competitors. In the absence of a strong moat, a large market only provides limited protection against competition.
#5 - Grubhub & The Limitations of TAM
#5 - Grubhub & The Limitations of TAM
#5 - Grubhub & The Limitations of TAM
Flip through any start-up’s pitch deck and you’re likely to find a few references to a large market size, often denoted as total addressable market, or TAM. Large, growing markets are catnip to businesses and investors. But a point not often highlighted in pitch decks is that large markets attract lots of competitors. In the absence of a strong moat, a large market only provides limited protection against competition.