In Croatia, there is a dichotomous determinant of the timber industry, the first feature being that it is the “production of raw material base from wood”, while the second feature is that it is an “industrial branch that produces the final consumer goods from wood”. This dichotomy is also followed by the National Classification of Activities, which classifies the processing of wood and wood products and the production of furniture in the manufacturing industry. "C - 16" stands for Wood and Wood Products Processing, and "C - 31" stands for Furniture Manufacturing. Based on the analysis of external potentials of the Croatian wood industry, it can be concluded that strategic opportunities are reflected in the number of forests and richness of wood raw materials, on the one hand, while, on the other hand, strategic threats are reflected in poorer international position, insufficiently modernized (outdated) technology, lack of investment, capital and insufficiently qualified labor force. However, the very fact that the Croatian wood industry has not yet used all its production potential in wood processing and furniture production, certainly opens up space for numerous improvements. Consequently, strategies and operational programs have been adopted, with the aim of realizing the strategic opportunities for which the Croatian wood industry has potential. The strategic importance of controlling on the path to success in the wood industry is achieved by accurately recognizing the current position and projection of the future desired position, with the implementation of the plan in order to achieve the desired goal. SWOT situational analysis as the first phase of strategic planning of the wood industry of the Republic of Croatia pointed out the key elements in choosing a strategy of differentiation, as a way of possible realization of the comparative advantage of the wood industry in Croatia.