Abstract
The firm strategy always concerns the comparative advantage in pursuing the win of market competition. However, firms nowadays face increasingly changeable competition environment. The focus of firm strategy has moved to the combination of resource management and competitive advantage. The prior studies have paid much more attention to the industry structure or the impact on the strategy of inner firm. Few have conducted empirical studies to show how firms may deal with a fast changing environment. Therefore, the study aims to employ the dynamic capability theory to explore how firms may constantly adapt themselves to the fast changing environment. The research takes Chiao-Fu Foam as a case study. By taking the case study, the research finds that (1) the capability of re-organizing a firm may become stronger when the outside environment changes fast; (2) a firm may maintain its leading advantage if the firm has rich and various capabilities; (3) a firm may identify relatively more development opportunities if the firm has stronger technological capability. Keywords：Dynamic capabilities, competitive advantage, Chiao-Fu Foam