| Abstract | In dynamic competition environment, M. Porter provides the theory of competitive advantages for gaining firms success. This is a breakthrough on theory of firm. This research uses his theory as backbone, and adopts customer-led concept, resource-based view under environmental context to configure a analytic framework on Taiwan steel industry and China Steel Co. (CSC), the biggest steel mill in Taiwan. Environmental trend, industrial structure, customer's value and resource leverage are the main aims of the analysis. Questionnaire, experts' forecast, performance comparison, and managerial control ratio are main methods to execute the analysis on steel industry. The results reveal Taiwan steel industry is still a attractive industry, in contrast with developed world, but creeping weakness owing to global overcapacity and imports flood. For sustaining market position and satisfying customer's need, CSC should expand supply (capacity and shipment) through phase IV expansion and diversified operation on steel-trade business. Comparing with worlds·· leaders, CSC must improving resource capability on fixed asset productivity, financial leverage, and outputs of higher unit price by enhancing management function and technology development. The past success of CSC is based on strong domestic consumption and cost advantages, but future advantages will fall on supply expansion, lower unit cost, fixed asset productivity and financial leverage and geographic advantages. So, investment in management function should focus firm's resources on those advantages which lead CSC to success. |