Market Analysis Guide

A comprehensive skill for conducting rigorous market analysis in academic and applied research contexts. This guide covers quantitative market sizing, competitive landscape mapping, and strategic positioning frameworks grounded in peer-reviewed methodologies.

Market Sizing Methodologies

Market sizing is the foundation of any credible market analysis. There are two primary approaches, and robust research typically employs both for triangulation.

Top-Down Approach (TAM/SAM/SOM)

Start with the total addressable market and narrow systematically:

TAM (Total Addressable Market)
  -> SAM (Serviceable Available Market)
    -> SOM (Serviceable Obtainable Market)

Example calculation:
  TAM = Global higher-education EdTech spend = $340B (2025, HolonIQ)
  SAM = AI-powered research tools segment  = $12B
  SOM = Realistic capture in Year 3        = $120M (1% of SAM)

Bottom-Up Approach

Build estimates from unit economics:

# Bottom-up market sizing
users_in_target_segment = 8_000_000  # global PhD + postdoc researchers
adoption_rate = 0.05                  # 5% in first 3 years
avg_revenue_per_user = 180            # USD/year
bottom_up_estimate = users_in_target_segment * adoption_rate * avg_revenue_per_user
# Result: $72,000,000

Always cite the data sources for each assumption. Use government statistics (e.g., NSF, Eurostat), industry reports (Gartner, McKinsey), and published academic datasets.

Competitive Analysis Frameworks

Porter's Five Forces

Apply Porter's framework systematically to map industry structure:

Force	Key Questions	Data Sources
Rivalry	How many direct competitors? Market concentration (HHI)?	Crunchbase, SEC filings
New Entrants	Capital requirements? Regulatory barriers?