In this PESTLE analysis of Norway, discover how the six macro-environmental factors (related to politics, the economy, social, technological, legal, and environmental influences) have affected this beautiful country. Both positively and negatively.
Political factors: Politically stable, prospering, and happy citizens
Stable political landscape.
Norway’s political landscape is stable. It’s never received opposition. Citizens are happy with the current and future landscape — a feat, considering so many countries are suffering from some level of political corruption these days.
Low crime rates.
But citizens and expats have many opportunities in Norway. Their safety and well-being are managed well, and financial growth is going up. Plus, Norway has one of the lowest crime rates in the world and zero transactional disputes. It’s a safe place to visit.
Part of Norway’s stability stems from the economy. The country is great at entering and enforcing business contracts, building businesses, and trading with other nations around the world.
A friend of other countries.
As a member of the European Free Trade Association (EFTA), Norway grants tariff rates to the European Economic Area (EEA) members.
Economic factors: Low unemployment and a growing economy
Low unemployment rate.
Fish and oil resources contribute to Norway’s economy — financially, and by providing jobs to millions of Norwegians. The unemployment rate is 3.9% as of September 2019 — which is an increase over the last few years. Compared to neighboring countries, like Finland and Sweden (who are at 6.6% and 6.7%), Norway’s unemployment rate is significantly less. In fact, it’s still one of the lowest worldwide.
A mixed economy matches the standard of living.
Norway’s economy is mixed. The economy has grown since the industrial area. But since the standard of living is higher in Norway than in many other European countries, the economy has to prosper for the people to feel financially comfortable. Norway does have a welfare system in place, which can offset costs for struggling individuals and families.
Dependent on oil and gas industries.
Most of the economy is dominated by industrial sectors and natural resources. Resources like aluminum, hydroelectric energy, and petroleum comprise the bulk of Norway’s profit. If it wasn’t for the oil and gas industries, Norway’s economy would suffer. These two industries finance the welfare state, provides the most government revenue and value too.
Sociocultural factors: a cultivated country with amazing work and living benefits.
Devotion to English.
Although the main language in Norway is Norwegian, most of the citizens speak English. They learn English in school and enjoy practicing with native English speakers. Most documentation is also written in English, making it easier for expats or travelers who don’t know Norwegian to survive.
The country’s landscape is beautiful — this is the main reason people visit Norway, after all. You’ll quickly find expansive greenery, crystal clear waters, mountains, and glaciers. It’s breathtaking, according to citizens and travelers.
Fantastic work benefits.
The healthcare services are top-notch. Both mothers and fathers can take up to 12 weeks of paid paternity/maternity leave during the first three years of a newborn’s life. Elderly citizens (age 67+) get an $1,000 a month state pension. And the average workweek is roughly 37.5 (less than the normalized 40 hours per week in other parts of the world). Plus, workers are given a guaranteed 5 weeks off for holidays and have 25 holidays a year (even more time off). The government cares for its citizens, and it shows.
Technological factors: New emergence of tech gems
Tech workers want to branch into Norway.
Norway is a desirable destination for tech companies and workers. The country offers universal health care, 1-year parental leave (for mothers and fathers), free tuition for universities, and five weeks of paid vacation annually. Who wouldn’t want to start or own a business there?
But Norway already has a thriving tech industry, filled with Grade A software engineers and other talent. Norway is the prime place for B2B firms like Microsoft. And with all the benefits of living there, more tech investors and workers are looking to jump into working in Norway full-time.
Many tech startups are starting and branching out of Norway, but this is only just starting to come to light. Part of this tech growth is connected to the social structure — in Norway, everyone is equal. Workers don’t have to deal with endless management, decision-makers, or in-office bureaucracy to get hired or complete work. In other parts of the world, tech employees need authority to allow changes, but in Norway, that’s not the case.
The country already has strong sectors in hydropower, gas, and oil, but are now also growing IoT, security, and fintech industries too.
Legal factors: A straightforward legal system
Norway doesn’t have many issues with its legal system. It’s trustworthy, according to Norway’s main business and employer organization. It has a strong banking system, welfare system, and pension for seniors.
Environmental factors: Big ecological promises in the next 30 years
Norway has big environmental goals, and has made a hefty promise — to be “carbon neutral” by 2050. Not only that, but it also aims to cut gas emissions 100%. Part of this could be achieved by selling electric cars only, which Norway is supposed to do in the next 5 years. But the big focus is on cutting carbon dioxide emissions annually by buying carbon credits internationally. By 2030, the government will be cutting emissions by 40%.
Norway PESTEL Analysis: Bottom line
Norway is a beautiful country with breathtaking natural landmarks. You don’t have to go far to find green hillsides or majestic mountains. The government wants to preserve Norway’s ecosystems, which is why they’ve set up an ambitious plan to cut gas emissions completely. This is one of the many ways in which the country is helping the land and the people.
Citizens already enjoy a high standard of living in Norway. They work less than 40 hours a week, get three months paid maternity or paternity, and several weeks of vacation. It’s no wonder so many tech startups want to move to Norway for work.
The country is also politically stable, with strong economic growth, and low crime and unemployment rates. It’s a lovely country to live or visit, all things considered.
Image by Simon Stones