I don't think I can agree to the concentric circles. It's too simplistic. There are many things I bought that I didn't need. My PlayStation 5 is hardly used, for example. It was an impulsive purchase. I could just as well have spent that money on a drone or a home cinema. Does that mean the PlayStation, the drone, and the home cinema compete in the leisure or entertainment market? How do measure that size?
Of course, it's an oversimplified model. I just wanted to stress the difference between need and demand.
There are no "impulsive purchases", when we buy something, we always satisfy one or the 16 basic human needs we all share. The only difference is that sometimes we realise what we're doing, and sometimes do it subconsciously.
I've already written about the 16 basic needs and will write about them again, soon
Solid thinking. For strategic making forward-looking environments your referencing, transformative strategic decisions, understanding the "volume of need" is far superior because it's about the opportunity space rather than just the current transaction space. Well said.
I don't think I can agree to the concentric circles. It's too simplistic. There are many things I bought that I didn't need. My PlayStation 5 is hardly used, for example. It was an impulsive purchase. I could just as well have spent that money on a drone or a home cinema. Does that mean the PlayStation, the drone, and the home cinema compete in the leisure or entertainment market? How do measure that size?
Of course, it's an oversimplified model. I just wanted to stress the difference between need and demand.
There are no "impulsive purchases", when we buy something, we always satisfy one or the 16 basic human needs we all share. The only difference is that sometimes we realise what we're doing, and sometimes do it subconsciously.
I've already written about the 16 basic needs and will write about them again, soon
I agree. But the Steven Reiss' sixteen basic desires are not sixteen addressable markets.
Of course not, and I didn’t say that.
Solid thinking. For strategic making forward-looking environments your referencing, transformative strategic decisions, understanding the "volume of need" is far superior because it's about the opportunity space rather than just the current transaction space. Well said.
Nice to meet you here, Anthony, many thanks for your comment!
Thx. Navigating this environment to see how it all works. Seems interesting.
Much better than LinkedIn so far
Nice article. I’ve seen the TAM mistake many times.
Many thanks!