Strategic management is the process by which the company analyzes the environment, set organizational direction, formulate strategies, implement strategies, cotrol them and evalute. The strategic management allows a clearer understanding of the strategic vision of the company, a sharper focus on what is strategically important and a better understanding of the rapid changes in the environment. Companies today operate in a dynamic, complex and turbulent environment. Environment affects the company, but also the company has an impact on the environment. Environment is divided into external and internal environment. Analysis of the external environment refers to the analysis of opportunities and threats, while the analysis of the internal environment focused on the analysis of the strengths and weaknesses of the company. The company responds to environmental influences choosing appropriate strategies or transformation of existing and creation of new organizational structures. There are many different methods of environmental analysis. It should be mentioned that the SWOT analysis is unavoidable method of strategic analysis, and PESTLE analysis that is often used to analyze the external environment. RWE Croatia Ltd. is part of the RWE Group, which was in 2013 entered the Croatian energy market. RWE Croatia Ltd. continuously carried out strategic analysis with the aim of better market position and increasing market share.