“But that’s the wrong goal,” David argued. “The idea isn’t to say here’s the battery market; we’ll take 5 percent of it. A founder has a different view of the world, which is ‘How big is the problem?’ not ‘How big is the market?’ Total addressable problem (TAP), not total addressable market (TAM). When you shift a mind-set from TAM to TAP, you’re not looking for 5 percent of the marketplace any-more; you want all of it. That’s why Uber does so well: They didn’t say, ‘Can we grab 10 percent of the taxi market?’ They said, ‘People want an easy way to get things done while they get around.’ They
...more
This highlight has been truncated due to consecutive passage length restrictions.
