A strategy for managing large datasets should involve using aggregated tables and pre-filtering unnecessary data to reduce the volume of information processed. Partitioning large datasets and utilizing incremental refresh within Power BI Development Services is another effective strategy to handle frequent updates without fully reloading the dataset. Ensuring that only the essential data is loaded into the model and using DirectQuery for real-time access to specific data sources further enhances the ability to manage and analyze large volumes of data efficiently.