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Orkla SWOT & PESTLE Analysis

ID : 52514953| May 2019| 15 pages


Business Sector :Retail, Branded consumer goods

Operating Geography :Norway, Europe

About Orkla :

Orkla ASA is a leading Norwegian supplier of branded consumer goods headquartered in Oslo, Norway. It operates in the grocery, retail, out-of-home, bakery and pharmacy sectors. Orkla’s Branded Consumer Goods business is divided into 4 major business areas, the Orkla Foods, Orkla Confectionery & Snacks, Orkla Food Ingredients and Orkla Care. Orkla also has operations under Orkla Investments, wherein its portfolio is based in Paints and Coatings, Hydro Power and Financial assets. Established over 350 years ago, Orkla started out solely as a mining company in Norway. Over the years, it has undergone a transformation from an industrial conglomerate to a branded consumer goods supplier. Orkla employs 18,178 employees, as on 31st December 2017. As of 2019, Orkla employs approximately 30,000 people and is spread across 40 countries. It is listed on the Oslo Stock Exchange as Orkla ASA and is among the largest companies on the Oslo Stock Exchange
Orkla’s vision statement reads “Your friend in everyday life” and it underlines the importance of strong business relations built on trust. Orkla’s USP or unique selling proposition lies in being one of the leading branded consumer goods company operating in the Nordic region, Eastern Europe, Asia and the US.

Orkla Revenue :

$39 561 million – FY ending 31st Dec 2017 (y-o-y growth 4.8%)
$37 758 million – FY ending 31st Dec 2016

Competitive Analysis of Orkla

The SWOT analysis of Orkla is presented below:
1. Market leader in the Nordics and Baltics
2. Country specific localization of products
3. Strong Integration of Consumer Goods brands
1. Business sector concentration risk
2. Weak performance of Orkla Health Poland
3. Dilutive effects of Acquisitions
1. Health-Conscious Consumer Trends
2. Climbing global per capita food consumption
3. Strengthening the out-of-home market
4. Creating new business opportunity through Blue Ocean Strategy.
1. Impact of Brexit
2. Currency fluctuations
3. Competition from international brands & private labels

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Detailed SWOT Analysis of Orkla



1. Market leader in the Nordics and Baltics Orkla is the market leader in the branded consumer goods segment in the Nordics and Baltics. Orkla is a house of brands, with over 300 local brands under it. In 2017, Orkla sold an average of 8.5 million products every single day. Some of the largest categories in which Orkla operates are snacks, confectionery, sauces and flavourings, ready-to-eat dishes, hygiene, toppings, dehydrated casseroles, soups and sauces, fish and seafood, pizza, side dishes/condiments. Orkla is a market leader in over 100 different categories. While 30% of the sales revenue is generated in Norway alone, other Nordic regions contribute 38.9%, Baltics contribute 4.9%, rest of the Europe contribute 22.4% and the rest of the world contribute 3.8%.Its popular brands include Grandiosa, TORO, Stabburet, Felix, Paulúns, Abba, Kalles, Beauvais, Den Gamle Fabrik, Spilva, Vitana, MTR, KiMs, Nidar, Göteborgs Kex, Sætre, OLW. With 18,178 employees spread across geographies, Orkla commands a huge presence all over Europe and is fast growing in other continents as well.

2. Country specific localization of products The largest and highest grossing division of Orkla - Orkla Foods witnessed promising organic top-line growth of 2.7% on an average and a positive growth in almost all the markets. Orkla’s strategic objective is to strengthen its market position by using its unique local insights and knowledge which gives it a significant edge over its competitors. Owing to the fact that Orkla serves in many diverse geographies, localization of its products as per the country’s consumer tastes, choices and preferences ensures a higher recall value for the brand, especially in the food segment. In 2017, Orkla’s Laban - Norway’s best selling gummies brand was launched in India’s fast growing sugar confectionery market. With Millennial as the target consumer, it was localized to launch in four different flavour - Green mango, mango, strawberry and orange as per standard Indian tastes.

3. Strong Integration of Consumer Goods brands With over 300 brands under Orkla, It is vital that Orkla takes integration initiatives to ensure collaboration and a shared strategy. By working as "One Orkla", Orkla is utilising economies of scale all the more effectively by focusing on lesser but larger production units. Orkla is increasingly divesting its non-core businesses to solely focus on its core competency - Branded Consumer Goods. It is currently in the last leg of its transformation from an industrial conglomerate to a branded consumer goods giant. This has led to freeing up of more resources for multiple acquisitions. “One Orkla” will also create synergies through the integration of acquired companies. The strength of integration positively determines the profitability of the company through efficiency of operations.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.


This section is available only in the 'Complete Report' on purchase.

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Check Out Analysis of Other Relevant Companies

References used in Orkla Analysis Report

1. Annual Report- Orkla Annual Report 2017, page 93

2. Food Waste Reduction Agreement-

3. Quaterly Report- Orkla Quarterly Report 2018, page 3,4

4. Consumer Value Trends-

5. Hourly Labor Costs-

How to Reference This Page?

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SWOT & (2020). Orkla SWOT & PESTLE Analysis - SWOT & [online] Available at: [Accessed 01 Jun, 2020].

In-text: (SWOT &, 2020)

Copyrights and Disclaimer

Orkla SWOT and PESTLE analysis has been conducted by Prachi Tripathy and reviewed by senior analysts from Barakaat Consulting.

Copyright of Orkla SWOT and PESTLE Analysis is the property of Barakaat Consulting. Please refer to the Terms and Conditions and Disclaimer for usage guidelines.

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Orkla SWOT & PESTLE Analysis
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