Strategic menagement is a very complex and demanding process in which a company anlyze enviroment, establishes bojecitve, formulates strategy, implements strategy and controls and evaluates performance. The companies goal is to realize vizion and mission and to achieve the set goals. For comapany to realize their goals and strategy they need to invest a lot of time in analyzing the enviroment. Internal enviroment , which is devide in organization stucture, organization culture, and resources, is the one that the comapany can influence that is why internal enviroment is the one that should always be stable, while the external enviroment, which is dived in task and general enviroment, is dynamic and variable and that is the reason why the company should dedicate a lot of its time so it could keep track of it constantly. To make internal enviroment stabile the company must be aware of its weaknesses and strenghts and use them in order to maintain its position, but in case of external enviroment the copmany must be aware of its threats, like the current and the possibility of entry of new competition, and its opportunities. It is in comapnies interest to always be one step ahead of its competition, and it can achieve that by merging analysis of internal and external enviroment in which they also anaysis competition and compose the best strategy to maintain buissnes and stay one step ahead the competition. It is important to mantion analysis like SWOT analysis, PEST anaysis and company analysis trought Porters 5 forces. When company realized theis strategy they use it to always have a competitive advantage and thus to survive on dynamic and variable market.