Question: Estimate the TAM
Explore how to estimate the total addressable market for noise-canceling headphones in the US using the LACE framework. Understand how to break down market sizing into clear components, make reasonable assumptions, compute step-by-step, and link estimates to strategic product insights. This lesson equips you to confidently structure ambiguous market problems and translate numbers into business opportunities.
Interview question:
Estimate the total addressable market (TAM) for noise‑canceling headphones in the US.
In this lesson, you’ll practice using the LACE estimation framework to produce a clear, structured, defensible TAM estimate, the kind expected in senior PM interviews. You’ll learn how to:
Break a market sizing problem into simple, logical components.
Make explicit, reasonable assumptions.
Compute step‑by‑step without false precision.
Translate the estimate into a strategic insight.
This question tests your ability to think in orders of magnitude and to link numbers → opportunity → product direction.
Scenario overview
Your interviewer asks: ...