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Strategy Researchers have drawn extensively from Industrial Organization Economics (IO Model) or Resource-Based. Those competition perspectives couldn''t explain the refinement about the interfirm rivalry. The object of this thesis is automatic industry in Taiwan. In this article we try to explain the impact of environment change, the characteristic of actor and action. We find some interesting issue. First, when the environment being worse, the large firm may attack its competitor and the rivalry between firms would increase. Secondary, the large firm plays the key role in the rivalry. In other words, the decision of the large firm would affect amount and speed from another firm. Third, we find that the more radical actions, the slower and more radical responds.
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