The heat demand in Sweden has stagnated and district heating companies must take action to sustain in the market. Based on this background this study combines a PEST and SWOT analysis to produce a basis to suggest general strategies suitable for district heating companies in southern Sweden. The analysis found that both investments into activities outside of the heating market, as well as further development of current systems, are viable options. Increasing the awareness and knowledge about district heating companies was also identified as a factor that could entail several benefits.