There has been a request for more studies on how public sector organizations apply Strategic Management (SM) in practice. This paper is our attempt to meet this request by presenting a qualitative case study of how a digitalization strategy was used to apply SM in the Swedish Transport Administration, a central government agency in Sweden. The empirical data contains 67 interviews at different hierarchical levels, focus group interviews and document studies. Eight of the interviews specifically targeted the work on the digitalization strategy. To analyse the empirical data, we aligned with the strategizing perspective focusing on possible tensions in strategy work. Thus, the aim of the paper is to further develop our knowledge of strategy work in the public sector by enhancing our understanding of what tensions strategy work brings about in the public sector and how these tensions potentially affect strategy making. By analysing strategizing micro processes, our results indicate that when working on digitalization, public sector organizations need to be aware of at least four possible tensions that can enable or constrain strategy making. These tensions are: legitimacy vs. practicality, administrative management vs. innovative approaches, accessibility vs. security and planned vs. emergent strategies.