Abstract: | Historical evidence analysis, in-depth interview, observation in site and narrative analysis are the major methods adopted in this research. It gathered, read, generalized and contrasted the official statistical data, policy of the industry, relevant researches, periodicals and magazines. Through in-depth interview to obtain dictated history from senior managers, principal of She Hong Industrial Co., Ltd., the company we discussed in this research, and other principles of milling machine industry. Consequently, the historical evidence and history of dictation can be linked to make a further confirmation and contrast. We can realize the situation of milling machine industry by observation of the operation of the organization, procedure of manufacture and activity of inward of the industry. Through the narrative analysis, the experience of interviewee can be conversed to a narrative. This research provides the important information of milling machine industry including their character and development, the competitive strategy, organization capacity. Hence, we can realize the industry how to design and perform the strategy to face the more competitive environment and the organization how to operate and support their company to conduce toward success. This research used Five Forces analysis which asserted by Porter to analyze present competitors, potential competitors, ability to negotiate with customers and suppliers, the goods of replacement and use SWOT analysis to discuss the Strength and Weakness of inward and Opportunity and Threat of outward of milling machine industry. We can find She Hong Industrial Co., Ltd. adopted the differential strategy to focus on production the milling machine. They attend to improve the technology and reinforce to build a complete network of cooperative industry in the middle of Taiwan. Then, they can shorten the delivery period and decrease the production cost by specialty and demarcation. We obtain the outcome from this research, that is, organization capacity may lead the organization to improve efficiency and support the competitive strategy to generate the ability to face the competitive environment. In order to temporize the variety of exterior environment, the organization capacity and competitive strategy must be adjusted properly. Meantime, a conservative financial strategy is a master key to help the company to serve the econonic depression. A organization structure of network can lead to own more pliable human resoureces, flexiable manufacture procedure and low life cost . Summarily, acquirement for R&D core competitive capacity and improvement for the technology steadily can maintain competitive advantag for long, a complete network of cooperative industry in the middle of Taiwan and specialty and demarcation can improve the competitive capacity of whole industry, and a differential strategy on productions can avoid the price competition to ensure acquired revenue. |