Iceland: Land of Fire and Ice

presented by
Apurva singh
roll-53
PESTLE ANALYSIS OF ICELAND
 POLITICAL FACTORS
▪ Iceland has been an independent constitutional republic since
1944. Politically, the nation has been relatively stable and has
the world’s oldest functioning legislative assembly, the
Althingi, established in 930 A.D.
▪ Iceland was the first country in the world to have a political
party formed and led entirely by women.
▪ The country has a high level of civic participation, with 81.4%
voter turnout during the most recent elections.
▪ Iceland has no standing army.
▪ Iceland is listed in the Guinness World Records book as the
"country ranked most at peace" and the "lowest military
spending per capita.
 ECONOMICAL FACTORS
• GDP per capita is $52,000 .
• Currency: Icelandic Króna (ISK).
• The main exports are tourism (42%),
aluminium (17%) and seafood (16%) .
• Despite the majority of employees working in
service industry, Iceland is a excessive
producer of goods for export .
• Use of abundant hydroelectric and geothermal
power has made Iceland the world's largest
electricity producer.
 SOCIAL
• Religion:- christian.
• Much Icelandic music is related
to Nordic music, and includes
folk and pop traditions.
• The culture of Iceland is rich
and varied as well as being
known for its literary heritage.
• Icelandic traditional art:-
weaving, silversmithing, and
wood carving.
 TECHNOLOGICAL
• Icelandic companies are born global,
due to the small domestic market. The
population is small, which requires
flexibility and willingness to adopt new
technologies.
• Due to the naturally cool climate,
there is no need for extensive
mechanical cooling equipment –
typically the largest expense for data
centers.
• Many companies, including Apple and
Facebook, have shown interest in
Iceland’s data centers because of the
reduced costs compared to US and UK-
based data centers.
 ENVIRONMENTAL
• Despite the name, “ice” only covers
about 10% of the land, but still
represents the largest glaciers left in
Europe. It represents a source of pure
water and symbolizes the purity of
Icelandic products.
• Icelandic air is cleaner than that of
most industrialized nations.
• Its water supply is polluted by
excessive use of fertilizers. Population
increases in the cities also contribute
to water pollution.
• Loss of vegetation by wind erosion.
Iceland in winter
 LEGAL
• LEGAL SCENARIO: Iceland has a civil
law legal system and thus Icelandic
law is characterized by written law.
• Iceland received its first Constitution
in 1874 and the current Constitution
of 1944.
• The transparent regulatory
environment supports commercial
activity, allowing efficient business
formation and operation.
 INDUSTRY ANALYSIS OF ICELAND
• Iceland is a stable democracy with an active consumer
economy.
• The pillars of the Icelandic economy are aluminum smelting,
fishing, and tourism. Iceland’s main material exports are
aluminum products and fish products, and main service
exports are tourism related services.
• In 2017, tourism accounted for 42% of total exports of goods
and services, while marine products were 17% of total
exports, aluminium products another 17%, and
manufacturing products other than aluminum accounted for
6%.
• Main material imports to Iceland in 2017 were industrial
supplies 27%, capital goods (except for transport) 21%,
transport equipment 19%, fuels and lubricants 12%,
consumer goods 13%, and food and beverages 8%.
 conti....
• Information Technology (IT) has also been one of the fastest
growing sectors of the Icelandic economy. Iceland's IT sector spans
all areas of the digital economy. Data management systems,
workflow systems, communications solutions, wireless data
systems, mobile systems, Internet solutions, e-commerce content
and solutions, gaming, healthcare solutions and of course fisheries
technology systems are all exported to overseas markets.
• The Icelandic energy grid derives 99% of its power from renewable
resources, making it uniquely attractive for energy-dependent
industries. For instance, the data center industry in Iceland is
rapidly growing.
 COMPETITIVE ADVANTAGE
• International Data centre hub.
• Power is 100% green. Iceland is one of few countries in Western
Europe which produces electricity using exclusively hydropower,
geothermal energy and onshore wind. These are sustainable,
environmentally “green” resources with zero carbon trade-offs. This
makes it an ideal location for addressing corporate responsibility
considerations.
• The Competitiveness of Iceland as a Destination for tourist.The
tourism industry is the third biggest export revenue generator in
Iceland.
• Icelandic natural conditions for farming are highlighted as a major
competitive advantage.cold water temperatures contribute to
reduced infection pressure and general better health for the fish.