Abstract
When Taiwan initiated its membership at World Trade Organization（WTO）,the government made its commitment to upgrade the competitiveness of agricultural sector. Because of the uniqueness and technical maturity of orchid, phalaenopsis has been recognized as the most potential floricultural product to enter global market. The purpose of this study is trying to propose imperative strategy from the perspectives of innovation and value-chain integration.In the history of economic development of Taiwan, there has been several “kingdom” in the agricultural sector such as banana, shrimp. They did help economy to grow at that time but did not transform successfully into a competitive “industry”. Although with good technology, these kingdoms emerged and fell down very quickly. The failures could be attributed to several reasons, such as, the lack of market awareness, no customer relationship management, focus on “product” but without a sense of “commodity”, and no innovation in-flow.According to the field study and analysis afterwards, there are two plausible strategies for the industry growth. First, with distinctive seed management and cultural tradition promotion, repositioning the business in the global market as a competitive brand. This strategy targets the niche market and could be naturally segmented with competitors. Second, redefine the role of trading firms as value chain integrators, and collaborate with its production partners. This strategy emphasis on the efficient utilization of global resources and create value. The research finally proposed a concrete action plan for strategy execution in 4 specific areas:infrastructure building, investment expanding, innovation and integration.