This report provides a comprehensive analysis of Klarna's business strategy, starting with an introduction to Klarna, a Swedish online payment service provider. It examines the influence of macro-environmental factors using PESTEL analysis, highlighting political, economic, social, technological, environmental, and legal impacts. The report then delves into Klarna's internal environment and capabilities using the McKinsey 7S model and VRIO analysis, assessing its strategy, structure, systems, skills, staff, style, and shared values. A SWOT analysis is also included to identify strengths, weaknesses, opportunities, and threats. Furthermore, the report explores competitive analysis, applying theories and models for strategic planning to achieve Klarna's business objectives, culminating in a strategic management plan. The report concludes with a summary of findings and references.