Product Expansion Proposal

GSPhotoCo’s proposed product expansion is a Visual Studio, targeting both creators and consumers, providing a comprehensive suite of tools enabling greater utilization of the company’s proprietary repository of distinct, varied, and licensable media. In terms of markets, GSPhotoCo is looking to re-segment the behemoth media-editing industry as a niche player specializing in stock imagery creation and customization.

 

 

Total Addressable Market 

The TAM for GSPhotoCo’s Visual Studio is the global market for stock media creation and consumption, spanning both the public and private sectors. This market encompasses a wide range of individuals and businesses looking for easy-to-use tools to create, edit, and customize visual content for a wide range of needs. 

TAM considerations include:

• The global population of content creators, artists, designers, marketers, educators, game developers, movie producers, and businesses
• The increasing demand for user-friendly content-creation tools
• The growth of digital marketing, content marketing, and online presentations
• The potential to serve a wide range of industries, including advertising, marketing, education, and more

TAM Calculations:

As of 2022, the entire stock media market is valued at $6.4 billion and is projected to double to $12.2 billion by 2032. Assuming free creator tooling, pay-per-use customization tooling, and every stock media resource is customized in some fashion; charging an additional $2 per licensed media transaction nets a total market size of ~$20 billion.

 

Serviceable Addressable Market

The SAM for GSPhotoCo represents the portion of the TAM the Visual Studio product expansion can effectively target based on its resources, capabilities, and positioning. In this case, GSPhotoCo is expanding its stock media repository to include content creation and customization tooling, creating a one-stop shop for all platform users. 

SAM considerations include:

• Existing GSPhotoCo users who are content creators, including photographers, videographers, and graphic designers
• The ability to attract new content creators who are seeking an integrated platform for content creation and publishing
• The potential to engage consumers and businesses looking for user-friendly tools to customize stock media for their projects

SAM Calculations:

Though GSPhotoCo is in two crowded markets, stock media with key players including The Associated Press, Getty Images, Unsplash, Adobe, and Shutterstock, and media editing, including Photoshop and Canva, GSPhotoCo is the dominant player in VR/AR stock media. Thus, the company is poised to capture nearly 95% of the 13.25% growth the AR/VR industry is expecting in the next 4 years. Therefore, predicting GSPhotoCo will grow to capture 10% of the stock media market, and average a 9% upsell conversion rate of $2 for every licensed dollar, GSPhotoCo’s SAM is ~$115 million ($6.4 billion market size * 0.10 market share * 0.09 conversion rate * $2 customization platform charge).

 

Serviceable Obtainable Market 

The SOM represents the portion of the SAM that GSPhotoCo realistically expects to capture within a specific timeframe. It considers the company’s market share goals and competitive positioning. GSPhotoCo aims to offer a suite of tools that lower friction for users and provide a seamless content creation experience. 

SOM considerations include:

• The effectiveness of GSPhotoCo’s marketing and user acquisition strategies
• User adoption and retention rates for the new suite of tools
• Competition in the content creation and customization tool market

SOM Calculations:

GSPhotoCo is an established player in the stock media industry, holding 2.3% of the overall market share ($150 million in revenue / $6 billion in current market size). For this reason, GSPhotoCo will focus its immediate attention on upselling the customization solution to its current users. Assuming an industry average 9% upsell conversion rate and $2 for every licensed dollar on those purchases, GSPhotoCo’s SOM is ~$27 million ($150 million * 0.09 conversion rate * $2 customization platform charge).

 

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Additional Sources:

https://my.ibisworld.com/home
https://www.dreamstime.com/blog/why-do-stock-photos-exist-55973#:~:text=Stock%20Photography%20Goes%20Online&text=It%20evolved%20with%20the%20industry,more%20than%2035%20million%20users.
https://www.reddit.com/r/OutOfTheLoop/comments/2ctxh4/what_are_stock_photos_and_why_do_they_exist/
https://jumpstory.com/blog/stock-photos-will-never-be-the-same-again/
https://www.canva.com/pricing/
https://journal.everypixel.com/ai-image-statistics