Situated in the North-Western part of Europe, Norway is a quaint Scandinavian country. It is famous for its external environment such as lush mountains, a beautiful coastline, and also for its peaceful nature. It’s neighboring countries are Denmark, Sweden, and Finland.
Following is Norway’s Pestle Analysis that looks into the various political, economic, socio-cultural, technological, legal, and environmental aspects of the country. Also, this will provide a detailed description of the country’s growth and how it is expected to perform in the coming times.
Table of Contents
Political Factors
Norway is one of the very few countries in the world that enjoy a stable political climate. It’s crime rates are currently at the lowest ever and citizens enjoy complete freedom of thought and action.
Moreover, the current government has taken it upon themselves to ensure the utmost safety of the people. It is one of the safest places to visit in the world. This stable political climate has also boosted the tourism industry of Norway. Also, its electoral process is highly transparent and no large scale political feuds have occurred in recent times.
Norway is a member of the EU (European Union) and the EFTA (European Free Trade Association). Also, it has friendly relations with the rest of the member countries and also allows subsidized tariff rates for them. Furthermore, it follows all the regulations of the European Union and has not caused any international turmoil in recent times.
Economic Factors
One of the primary economic strengths of Norway lies in its low unemployment rate. The current unemployment rate in Norway is around 4%, which is not only one of the lowest within the European Union but also in the world. Its primary resources are fish and oil, and the proper maintenance of both these industries has allowed the Norwegian economy to prosper.
Other resources include aluminum and hydroelectric energy. However, the Norwegian government has developed these industries to ensure maximum revenue generation.
The nature of Norway’s economy is mixed, i.e. it has both industrial and non-industrial sectors. The country also has a strong welfare system in place to help those less privileged. An analysis of the Norwegian economy presents a high cost of living compared to the rest of the world. But the abundance of jobs in multiple sectors allows people to thrive without hassle.
Socio-cultural Factors
Norway has its own language respected by all strata of society. But the population is also quite fluent in English. Moreover, it is taught in schools and official documents are written in English as well. This makes the country easily accessible to foreigners.
Since a lot of people travel to Norway to enjoy its scenic beauty, the population’s comfort with the English language allows the tourism industry to thrive further.
The average living conditions in Norway are beyond excellent. The state provides 12 weeks of paid leave for maternity/paternity purposes and $1000 per month pension for citizens who are over 67 years of age. Moreover, general working conditions are also great and the average working hours are lower than those of most countries.
As a society, Norway is quite progressive and it takes pride in its historic Nordic culture. Also, it has various monuments and museums that pay respect to its rich heritage.
Technological Factors
The technological environment in Norway is thriving in full glory as many international tech companies are setting up offices throughout the country. Microsoft is one of the most well-known tech companies among others that have set up a wing in Norway.
Since the working conditions are great employees provide their best efforts. This along with a prospering economy has led to the formation of many small companies as well that help the SME industry grow.
The professional environment in Norway is quite different in the sense that the management does not hold supreme power over the employees. They enjoy a large number of off days and low working hours, thereby providing a great opportunity for professional development. Overall, the technological sector in Norway is growing at a rapid pace and is bound to become one of the leading industries in the recent future.
Legal Factors
The Norwegian legal system is highly transparent and allows full impunity to all law-abiding citizens. Basic freedoms are never hampered with, and many laws have been set up to aid the needs of the population. The Norwegian government is always updating its laws to meet the requirements of the current era, be it pension laws or maternity leave.
Norway also has a low crime rate which is partly due to its forward-thinking legal system. Many international committees have cited the Norwegian legal system to portray how a just and progressive legal system should function. The legal system further ensures that all citizens are treated equally and all social boundaries are broken.
Environmental Factors
Being a country surrounded by mountains, oceans, and glaciers; the Norwegian government pays high regard to the environmental factors that have arisen in recent times. It plans to be carbon neutral within the next 30 years (2050) and has put forward a plan to completely reduce all gas emissions. It plans to increase the production of electric cars in order to meet these goals.
Norway is at the forefront of a battle to reclaim the environment and it aims to set an example to the world by reducing its carbon footprint overall. Various environmental committees have been set up to monitor the progress towards its goals.
Norway’s PESTLE Analysis: Conclusion
Norway is currently one of the best places in the world to live in and this detailed analysis presents all the reasons why it is considered so. Furthermore, the country is developing all its sectors and is highly conscious of its treatment of the population.
In the near future, the condition of Norwegian society and the economy is set to develop further. This will further aid its tourism industry and set it as a beacon of progressive statecraft within the EU. Hopefully, you were able to analyze the current condition of Norway with the help of this PESTLE analysis.
