Country

Analysis of

Norway
Deepanshu
Sharma
H053

Some facts about Norway

System of Government: Constitutional Monarchy and
parliamentary democracy
Head of Government: Prime Minister Erna Solberg
Area: 385,155 square kilometres
Population: 5,156,451 (October 2014)
Capital city: Oslo
Languages: Norwegian, Bokmal, Nynorsk
King: Harald V of Norway
Currency: Norwegian Krone
Religion: Church of Norway
GDP(nominal): $420.958 billion (total)
$80,749 (per capita)

Culture of Norway
Norwegian culture blossomed with nationalist efforts to achieve an independent identity in the
areas of literature, art and music. Norwegian language is the official language spoken by
around 5 million people.

Human
Rights

LGBT rights
Gender
Equality
Equal pay,
seniority
positions
Absolute
primogenit
ure
Minority
rights
Egalitarian
culture
Best
country to
live by UN

Complete
religious
freedom
Evangelical
Lutheran
State Church
of Norway
Islam, nonreligious
communities

Cuisine/
Sports

Art/Cinema
/Music

Religion

Landscape
Paintings
Symbolic/expre
ssionist
paintings
Norwegian
cinema has
international
recognition
Filming
Location
Die Another
day, Star Wars
Strong folk
tradition
StargateNorwegian
production

Cold meals,
only one hot
meal
Seafood,
hunting
Game and
Salmon
Sweet and
sour flavors
Cheese,
Bread an
important
staple
2nd highest
consumer of
coffee
Ice Hockey,

Business

6th-ease of
doing
business
Informal
business
styles
Direct
communicati
on
Business is
transactional
Low-context
culture

Political Environment in Norway

Norway is considered to be one of the most developeddemocraciesandstates of justicein the
world. Since 2010, Norway has been classified as the world's most democratic country by
theDemocracy Index.
Norway is aunitary constitutional monarchywith aparliamentary systemof government,
wherein theKing of Norwayis thehead of stateand thePrime Ministeris thehead of
government.
The parliament (Storting) is elected through a proportional system every 4 years in
September. It consists of 169 members. Erna Solberg is the incumbent Prime Minister of
Norway since October 2013
Executive poweris exercised by theKing'scouncil, thecabinet, led by thePrime
Minister of Norway. Legislative poweris vested in both thegovernmentand theStorting,
elected within amulti-party system
The mainland of Norway is divided into 19 counties and 430 municipalities. Counties and
municipalities are subject to the oversight of agovernor appointed by the King in
theCouncil of State. Each county has a directly electedcounty assembly, led by amayor,
which decides upon matters falling within purview of the counties

the legal and institutional framework in Norway is characterised by a high degree of

transparency, accountability and integrity, and the perception and the occurrence of
corruption are very low

Economy of Norway
With new economy
policy, Norway is
attracting more FDI and
foreign institution
investors (FII). Some of
the major industries in
Norway are permitted
100% FDI.
The Norwegian economy
realized good growth in
the past years and is
expected to reach
$608.6 billion by 2018.
Most of the sectors of
Norway are open for
foreign direct
investment (FDI).
Norway is amongthe most
expensivecountries in the
world. However high
public sector spending
makes education free for
citizen of any nationality
and healthcare services
virtually free

Theeconomy of Norwayis
a developedmixed
economywith stateownership in strategic
areas of the economy. The
currency of Norway is
Norwegian Krone.

Norway is the fifth

largest exporter of oil
and the second largest
exporter of gas. The
major source of income
of Norway is the energy
industry which is driving
the economy.
The Gross Domestic
Product (GDP) in Norway
was worth 522.35 billion
US dollars in 2014. The
GDP growth rate has
been stagnant at around
0.8%The per capita GDP
of Norway is 4th highest
in the world at $66,937
as of 2014.
Service sector contributes
52% of the GDP followed
by industrial sector at 46%
and agriculture at 2%.
Maritime, seafood, IT and
technology are the major
industries emerging out as
some of the major
contributors to Norwegian
GDP

History of Norway
10000 years ago
Farming and
livestock

Post world war IIruled by various

parties as per
constitution

500 B.C. Bronze

age-weapon,
Jewelery and tools

Under German
Occupation during
world war II

1000 AD Iron Agebetter tools and

trade

800-1030 AD
Viking Age- built
ships travelled
world raiding
countries
resources

1380-1905 Union
with Denmark and
Sweden

13th century
Norwegian
empireChristianity was
introduced

Natural Resources of Norway

Landscapes
Fjords

Glaciers

Trade Patterns of Norway

Norway mainly
trades with other
European
countries as
majority of the
country's total
exports and
imports are done
with the
European
Exports of
Norway are
countries
valued at $160 billion.
The Top 5 products
exported by Norway
are Crude Petroleum,
Petroleum Gas, Refined
petroleum, Non-fillet
fresh fish and Raw
Aluminium. Top 5
exporting partners of
Norway are UK,
Germany, Netherlands,
France, Sweden and
US.

Norway is not a
part of EU.
However it is a
member of other
trade
organizations like
OECD, WTO,
European
Economic Area
and others
Imports of Norway are
valued at $88 billion.
The major goods
imported by Norway
include machinery and
equipment chemicals,
metals and foodstuffs.
Top 5 importing
partners of Norway
are Sweden, Germany,
China, Denmark and
United Kingdom.

Geography of Norway

4% arable land
56% of energy requirements met
through renewable energy
sources. High investment in clean
energy methods

Seafood and Stockfish

exports

Largest oil exporter of

Europe (3rd in the world)

Scandinavian conifer forests,

Timber for buildings, papers and

International brand that failed in Norway

Lidl Stiftung & Co. KG is

a German global
discount supermarket
chainthat operates
over 10,000 stores
across Europe. Lidl is
the chief competitor of
the similar German
discount chainAldi

On September 23.
2004, the first 10
Norwegian Lidlshops
opened for business. By
2007, the number of
outlets had grown to
over 50. On March 14.
2008 it became public
knowledge that Lidl had
signed a contract with
its competitor Rema
1000 to sell all of its
Norwegian business
i.e. all of its real estate
and indirectly its market
share

When Lidl made their

withdrawal from the
Norwegian market after
only 3.5 years of
operation, it was
certainly an unexpected
move from such a large
company, usually
known for its
decisiveness, stamina,
perseverance, muscle
and financial strength.
The Norwegian failure
was a unique case in
Lidl's corporate history
the first ever time the
company pulled out of a
country entirely

Reasons for failure of Lidl

Advertising
Regulations-beer,
tobacco
Import regulationsprivate labels
Local governmentsuitable areas for
stores

Opposition by Special
Interest Groups
Threat to local and
global environment
Threat to employees
rights

Norwegian market-highly
mature dominated by 4
players
Oligopoly and
Monopolistic market
situations
Price Collaboration

Private label productsbrand conscious

customers
Cheap products to Affluent
customers
Norwegian society-prefer
groceries with Norwegian
origin

No communication
strategy
Secretive Profile
Negative publicity
No bargaining power
with suppliers

Building stores
outside city centres
Shopping small
quantities at
neighbourhood stores
Focus on price rather
than on quality