Dalic has accepted that England are dangerous opponents, but the 51-year-old is confident that his team have enough to progress to the final of the competition.
"I wouldn't say there are any glaring weaknesses - they are in the semi-finals, that says it all. They showed from the games I've seen so far that they play direct football and they are very fast," Dalic told reporters.
"They are really good at set pieces and their tall players are dangerous at corners. They dealt with Sweden relatively easily so we know they are going to be a difficult opponent and we respect them. But we believe in our strengths, too. We don't fear England or anybody else."
Croatia also made the semi-finals of the 1998 World Cup before losing to tournament hosts France.