The telecommunications industry in the Republic of Croatia is of key economic importance. A1 Hrvatska d.o.o. competes from a position of the main challenger in the market, that is – represents second largest company in terms of revenue and user base. The subject of this paper is the strategic analysis of A1 Hrvatska d.o.o., i.e., the assessment of the company’s ability to operate optimally within a dynamic internal and external environment, and perform adequate market positioning in future. The main goal of this paper is to evaluate the success of the selection and implementation of the development strategy of A1 Hrvatska d.o.o., but also to identify development alternatives in company’s future, in the circumstances of the Croatian telecommunications industry. The results of the analysis prove A1 Hrvatska operates reliably in a growing and developing trend, and show the presence and employment of valuable core competencies, while the future perspective of the company and the rest of the Croatian telecommunications market largely depends on actions and reactions to growing substitute trends. The position and perspective of the company were assessed by the methods of strategic, market and financial analysis, by applying relevant scientific articles and research of professional literature.