Abstract
Networking equipment manufacturers in Taiwan have been seeking a new strategy under the global and domestic competition. The business strategy has evolved from original equipment manufacturing (OEM) to the optimization of supply chain management and production-marketing coordination in order to gain highest benefit. This research aims to study a case of the production-marketing coordination of the company which the research works for in the face of demand change of a customer by referring to the literature regarding competition strength and strategy management and employing Michael Eugene Porter’s five forces model of competition to discover the competition strategy models. After reviewing the market status, five forces model and SWOT model were employed to compare the strengths of among the domestic networking equipment manufacturers and to discover the opportunities so as to propose the suggestion for the studied case based on its competition advantage. The essential strengths of the case are: innovation, cost control, quality management and customer relationship which are materialized by launching new products in time to gain the strengths; managing supply chain globally to decrease customers' inventory cost and increase the flexibility of logistics; creating high customization and differentiation to provide high value-added service to the customer.