Abstract: | In Taiwan the hardware industry is positive development IT industry. Taiwan is the world's second largest IC (Integrated Circuits) design cluster centers after the United States; the output value in the global share of 28.2%, foundry output ranks is first in the world, the global share of about 70%. In recent years, governments actively promote cloud computing, IT hardware and software needed to effectively promote industrial cooperation, but Taiwan lack experience of integration. The software Industry also wore the halo of the information technology industry, but regardless of size or resources is far less than the hardware industry, usually has been mostly small and medium enterprises. SMEs are an important cornerstone of prop up the Taiwan's economic lifeline, the number of Taiwan's small and medium enterprises is better than weighing 97.68% in 2009, employment in SMEs up to 8 million and sixty-six thousand, accounting for the proportion of employment 78.47%. Traditionally, SMEs have low level of the innovative resources and R & D investment, but the software industry is focus on R & D and other technical skills. SMEs face a new type of competition; the theory of the past for small and medium enterprises will be limited. This study selected two cases in their competitive business behavior observed, Through participant observation, in-depth interviews and literature review, this study concludes four dimensions that of "social network", "business strategy", "products and technology", "corporate culture". After analysis this study gets some found. The small and medium sized IT industry, the strength of interpersonal networks can't bring significant benefits of their business. The phenomenon of frequent transaction of staff, it is Important to keep personnel that have the technical ability. Use focus strategy to avoid competition from large enterprises, should also be efforts to increase product differentiation, reduce new competitors to use imitation strategy condition the price competition in the market. |