What Every Entrepreneur Can Learn from the SSE and Npower Merger

SSE Npower Merger

The SSE and Npower merger has hit the headlines this week with a move that could signal a significant change within the electricity power market. It’s an aggressive move but the execution of an almost perfect text book strategy to increase market share that every entrepreneur should be looking at.

The Big 6 Energy Providers

Currently there are 6 main players which make up the electricity market.  Here are the Big 6 and a current estimate of their market share:

EDF 20.4%

Npower 18%

E.on 15.9%

SSE 12.2%

British Gas 9.1%

Scottish Power 4%

The Impact of the Npower and SSE Merger on Market Share

With Npower and SSE set to join forces their combined market share is set to become just over 30%, putting them ahead of the current market leader EDF by 10%.

Why is Market Share so Important?

Market share is a common way of measuring how well one Company is doing against the competition.  Simply put, it shows the share of the entire market one Company has as its customer base.

Why Increase Market Share?

To Grow

Even if the market your business operates in is not growing, increasing your market share means you can continue to grow your business.

Weakening Your Competitors

Stealing market share means increasing business turnover while weakening your competitors turnover at the same time.

Market Share Strategy for Entrepreneurs

Although the SSE and Npower merger is an example of growing market share by two huge corporations to become market leaders, adopting a strategy to increase market share is key to growing a business of any size.

Here are some great strategies that Entrepreneurs can consider as part of their growth plans:


The intention of SSE and Npower was to increase their customer base and become market leader but there are other outcomes that can be achieved by merging.  Could you enhance your product or service in someway?  Could you offer a fuller range of services and market yourself as a ‘one stop shop’ for customers?  

Merging with a competitor or another business with complimentary skillset could strengthen your product, making you more attractive to customers and giving your business the potential to increase its market share.


Strategic acquisition of your competitors is another way to take customers and reduce your competition in the market you operate. It is quite common and well practiced for small business to achieve growth by acquisition. It’s quicker and often cheaper than growing organically and as with merging, it can include acquiring complementary businesses to improve the products or services being offered.


Entrepreneurs time after time come along with a redesigned product that has disrupted markets stuck in the past.  

By reviewing the market you are in, listening to customers and making up for areas where your competitors lack in product delivery you can differentiate your own product or service and gain market share.

Customer Loyalty

So much focus is put on making new sales but this should only form part of a business’s overall growth strategy.  By putting effort behind customer service you can build brand loyalty so hold onto your existing customer base as well as enticing customers over from your competitors.

Sell More to Existing Customers

By reviewing your existing customer base you can figure out what other products you can sell to them that either your competitors are not selling or to enhance their existing products.  Again, differentiating you from the competition and help you to grow your own market share.

Sell to New Demographics & Markets

Another way to grow your market share is to simply find more customers.  Finding a group of customers that have not previously been targeted and selling your product, or a tailored product suitable to them, can help you grow your market share in a relatively uncompetitive part of the market.

Understand Your Market, Differentiate Yourself and Gain Market Share

Understanding the market you operate in and what you can offer is key to working out which growth strategy is right for your business. But it no matter what size your business is and at every stage there are growth strategies you can adopt to increase your market share.